Please use this identifier to cite or link to this item:
http://hdl.handle.net/1893/451
Appears in Collections: | Accounting and Finance Journal Articles |
Peer Review Status: | Refereed |
Title: | Do spin-offs really create value? The European case |
Authors: | Veld, Chris Veld-Merkoulova, Yulia V |
Contact Email: | c.h.veld@stir.ac.uk |
Keywords: | divestitures spin-offs event study long-run excess returns industrial focus |
Issue Date: | 2004 |
Citation: | Veld C & Veld-Merkoulova YV (2004) Do spin-offs really create value? The European case, Journal of Banking and Finance, 28 (5), pp. 1111-1135. |
Abstract: | We study wealth effects for a sample of 156 spin-offs from 15 different European countries that were announced between January 1987 and September 2000. The cumulative average abnormal return over the three-day event window is 2.62%. This number increases to 2.66% for the subsequently completed spin-offs. The cumulative average abnormal return is 3.57% for completed spin-offs by companies that increase their industrial focus and only 0.76% for non-focus increasing companies. The difference between these two sub-samples is significantly different from zero. These results are in line with previous studies for the United States. The long-run returns in excess of matching firms are mostly insignificant for parents, subsidiaries and pro-forma combined firms. This result suggests that, unlike U.S. spin-offs, European spin-offs are not associated with long-run superior performance. |
DOI Link: | http://dx.doi.org/10.1016/S0378-4266(03)00045-1 |
Rights: | Published in Journal of Banking and Finance by Elsevier |
Files in This Item:
File | Description | Size | Format | |
---|---|---|---|---|
Spinoff-jbf.pdf | 234.82 kB | Adobe PDF | View/Open |
This item is protected by original copyright |
Items in the Repository are protected by copyright, with all rights reserved, unless otherwise indicated.
If you believe that any material held in STORRE infringes copyright, please contact library@stir.ac.uk providing details and we will remove the Work from public display in STORRE and investigate your claim.