Journal of Financial Economics Vol. 12 No. 4 1983
Effects of recontracting on shareholder wealth
Abstract
This paper investigates the effect of voluntary corporate spin-off announcements on shareholder wealth. A significant positive share price reaction is documented for 93 voluntary spin-off announcements between 1963 and 1981. These shareholder gains do not appear to come wholly at the expense of bondholders. Evidence suggests the gains to shareholders may arise from tax and regulatory advantages and/or improved managerial efficiency resulting from the spin-off.
- DOI
- 10.1016/0304-405x(83)90043-0
- Volume
- 12
- Issue
- 4
- Pages
- 437-467
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref