Mindfulness Matter in Divestiture Decisions :A Review of Profitability and Market Valuation in Indian Listed Firms

Prajakata Patil; Bharti Vidhani

doi:10.36948/ijfmr.2026.v08i03.78889

Mindfulness Matter in Divestiture Decisions :A Review of Profitability and Market Valuation in Indian Listed Firms

Author(s)	Ms. Prajakata Patil, Dr. Bharti Vidhani
Country	India
Abstract	Corporate divestitures have emerged as an important strategic mechanism for Indian listed firms seeking to enhance profitability, improve market valuation, and strengthen overall financial health in an increasingly competitive and uncertain economic environment. While a substantial body of corporate finance literature examines the effects of divestitures on operating performance and shareholder value, comparatively limited attention has been paid to the cognitive and decision-making processes that shape divestiture outcomes. In recent years, mindfulness has gained prominence in finance and management as a concept associated with heightened awareness, present-moment attention, disciplined judgment, and reduced susceptibility to cognitive biases. Against this backdrop, this paper provides a comprehensive literature-based review of corporate divestitures and their implications for profitability, market valuation, and liquidity, with a specific focus on Indian listed firms. Drawing upon Agency Theory, the Resource-Based View, the focus hypothesis, and cognitive and behavioral perspectives in corporate financial decision-making, the paper integrates mindfulness as an interpretive and moderating lens influencing divestiture decision quality and post-divestiture financial outcomes. The review synthesizes Indian and global empirical evidence on asset sell-offs, demergers, spin-offs, and disinvestment activities, highlighting that divestitures can generate improvements in profitability, market value, and liquidity when executed with strategic clarity and mindful financial judgment. However, outcomes remain heterogeneous across firms, industries, and time horizons, particularly in the long run. The paper identifies significant research gaps, including the scarcity of India-centric studies on liquidity and financial health and the near absence of mindfulness-based perspectives in divestiture research. By aligning divestiture outcomes with mindful financial decision-making, this study contributes to the emerging discourse on mindfulness in finance and provides a strong conceptual foundation for future empirical research on corporate restructuring among Indian listed firms.
Keywords	Corporate Divestiture, Mindfulness, Profitability
Published In	Volume 8, Issue 3, May-June 2026
Published On	2026-05-19
DOI	https://doi.org/10.36948/ijfmr.2026.v08i03.78889

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Mindfulness Matter in Divestiture Decisions :A Review of Profitability and Market Valuation in Indian Listed Firms

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