Location of Repository

Detecting patterns of the spinoff decision of companies and accessing the determination of the abnormal returns

By Frederico Jose Rodrigues Drenker dos Reis

Abstract

This paper examines value created through spinoffs over a period from 2002-2010. The net debt to average share price ratio and the debt to asset ratio of a company impacts the decision for this restructuring process statistically significant. The announcement of a spinoff yields abnormal returns (AR) for the stockholders of the parent. The relative size of the spin and the financial leverage correlated with the AR positively, whereas the net debt per share and the return on asset negatively. Therefore, no direct wealth transfer from the debt holders of a company to the equity holders can be derived from these results

Topics: Spinoff, Abnormal returns, Wealth transfer, Debt per share, Ações (Finanças), Mercado de ações, Investimentos, Sociedades comerciais, Reorganização
Year: 2014
OAI identifier: oai:agregador.ibict.br.RI_FGV:oai:bibliotecadigital.fgv.br:10438/12114
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • http://www.rcaap.pt/detail.jsp... (external link)
  • Suggested articles


    To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.