Using a unique sample constituted A-share listed companies from 2008 to 2022 in China,this study empirically tested the impact of divestitures on corporate risk-taking. Results indicate that divestitures positively impact corporate risk-taking. Specifically, strategic and related-party divestitures both promote corporate risk-taking, further improving information transparency. Furthermore, the effect of divestitures is more pronounced in firms with significant financing constraints.
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