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http://hdl.handle.net/1893/347| 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 |
| Author(s): | Veld, Chris Veld-Merkoulova, Yulia V |
| Keywords: | Spin-off Wealth transfer Divestitures Stockholders Bondholders Stocks Prices Bonds Prices Investment analysis |
| Issue Date: | 2008 |
| Date Deposited: | 25-Apr-2008 |
| 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. https://doi.org/10.1111/j.1755-053X.2008.00006.x |
| 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. |
| DOI Link: | 10.1111/j.1755-053X.2008.00006.x |
| Rights: | The definitive version is available at www.blackwell-synergy.com |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| stockholder-bondholder-conflict-fm-final.pdf | Fulltext - Accepted Version | 123.69 kB | Adobe PDF | View/Open |
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