Journal of Financial Economics Vol. 15 No. 1-2 1986
A comparison of equity carve-outs and seasoned equity offerings
Abstract
This paper investigates share price reactions of parent firms to announcements of public offerings of stock of wholly-owned subsidiaries. The average abnormal gains associated with ‘equity carve-out’ announcements contrast with the average abnormal losses documented here and elsewhere upon announcements of public offerings of parent equity. Four features distinguishing equity carve-outs from parent equity offerings are discussed. Evidence is provided on these features as potential explanations for the positive average share price reaction associated with announcements of equity carve-outs.
- DOI
- 10.1016/0304-405x(86)90053-x
- Volume
- 15
- Issue
- 1-2
- Pages
- 153-186
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref