|Appears in Collections:||Accounting and Finance Journal Articles|
|Peer Review Status:||Refereed|
|Title:||An empirical analysis of the stockholder-bondholder conflict in corporate spin-offs|
Veld-Merkoulova, Yulia V
|Citation:||Veld C & Veld-Merkoulova YV (2008) An empirical analysis of the stockholder-bondholder conflict in corporate spin-offs, Financial Management, 37 (1), pp. 103-124.|
|Abstract:||We analyze the effect of daily stock and bond abnormal returns around spin-off announcements. Over a three-day event window, we find statistically significant abnormal returns of 3.07% for stocks and 0.11% for straight bonds. Both stock and bond abnormal returns are higher for firms with lower interest and dividend payouts. Stock abnormal returns are also higher for firms with higher pre-spin-off leverage. Overall, we find that the firm value increase compensates for the wealth transfer effect and that bondholders’ wealth is not reduced as a result of spin-off.|
|Rights:||The definitive version is available at www.blackwell-synergy.com|
|stockholder-bondholder-conflict-fm-final.pdf||123.69 kB||Adobe PDF||View/Open|
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