Value creation through spin-offs: A review of the empirical evidence Export

@article{citeulike:6038646, abstract = {This paper reviews the literature on the factors that influence the wealth effects associated with the announcements of corporate spin-offs (also known as demergers). Meta-analysis is used to summarize the findings of 26 event studies on spin-off announcements. A significantly positive average abnormal return of 3.02\% is found during the event window. Returns are higher for larger spin-offs, for divestments that are tax or regulatory friendly and for spin-offs that lead to an improvement of industrial focus. It is also found that spin-offs that are later completed are associated with lower abnormal returns than non-completed spin-offs. The second part of the paper overviews studies on the long-run stock price performance of spin-offs. Even though early studies find a long-run superior performance, this effect is no longer found in later studies that use more refined statistical tests.}, address = {University of Stirling, Department of Accounting and Finance, Stirling, Scotland, UK}, author = {Veld, Chris and Veld-Merkoulova, Yulia V.}, citeulike-article-id = {6038646}, citeulike-linkout-0 = {http://dx.doi.org/10.1111/j.1468-2370.2008.00243.x}, citeulike-linkout-1 = {http://www.ingentaconnect.com/content/bpl/ijmr/2009/00000011/00000004/art00003}, citeulike-linkout-2 = {http://www3.interscience.wiley.com/cgi-bin/abstract/121390206/ABSTRACT}, doi = {10.1111/j.1468-2370.2008.00243.x}, issn = {1468-2370}, journal = {International Journal of Management Reviews}, keywords = {creation, empirical, evidence, review, spin-offs, value}, number = {4}, pages = {407--420}, posted-at = {2009-11-04 14:43:16}, priority = {3}, publisher = {Blackwell Publishing}, title = {Value creation through spin-offs: A review of the empirical evidence}, url = {http://dx.doi.org/10.1111/j.1468-2370.2008.00243.x}, volume = {11}, year = {2009} }

TY - JOUR ID - citeulike:6038646 L3 - citeulike-article-id:6038646 N2 - This paper reviews the literature on the factors that influence the wealth effects associated with the announcements of corporate spin-offs (also known as demergers). Meta-analysis is used to summarize the findings of 26 event studies on spin-off announcements. A significantly positive average abnormal return of 3.02% is found during the event window. Returns are higher for larger spin-offs, for divestments that are tax or regulatory friendly and for spin-offs that lead to an improvement of industrial focus. It is also found that spin-offs that are later completed are associated with lower abnormal returns than non-completed spin-offs. The second part of the paper overviews studies on the long-run stock price performance of spin-offs. Even though early studies find a long-run superior performance, this effect is no longer found in later studies that use more refined statistical tests. IS - 4 JF - International Journal of Management Reviews SN - 1468-2370 AD - University of Stirling, Department of Accounting and Finance, Stirling, Scotland, UK EP - 420 TI - Value creation through spin-offs: A review of the empirical evidence PB - Blackwell Publishing VL - 11 SP - 407 KW - creation KW - empirical KW - evidence KW - review KW - spin-offs KW - value AU - Veld, Chris AU - Veld-Merkoulova, Yulia PY - 2009/// UR - http://dx.doi.org/10.1111/j.1468-2370.2008.00243.x ER -