Corporate spin-offs value creation parent & spin-off view

Corporate spin-offs have gained popularity over the past few years. Despite of this in Finnish media and university teaching this phenomenon has gained little attention. This study aims to fulfill this knowledge gap. Spin-off is a restructuring procedure where company splits into two separate legal...

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Main Author: Vilppula, Joona
Other Authors: Kauppakorkeakoulu, School of Business and Economics, Taloustieteet, Business and Economics, University of Jyväskylä, Jyväskylän yliopisto
Format: Master's thesis
Language:eng
Published: 2015
Subjects:
Online Access: https://jyx.jyu.fi/handle/123456789/47080
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author Vilppula, Joona
author2 Kauppakorkeakoulu School of Business and Economics Taloustieteet Business and Economics University of Jyväskylä Jyväskylän yliopisto
author_facet Vilppula, Joona Kauppakorkeakoulu School of Business and Economics Taloustieteet Business and Economics University of Jyväskylä Jyväskylän yliopisto Vilppula, Joona Kauppakorkeakoulu School of Business and Economics Taloustieteet Business and Economics University of Jyväskylä Jyväskylän yliopisto
author_sort Vilppula, Joona
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description Corporate spin-offs have gained popularity over the past few years. Despite of this in Finnish media and university teaching this phenomenon has gained little attention. This study aims to fulfill this knowledge gap. Spin-off is a restructuring procedure where company splits into two separate legal entities via pro-rata transaction basis. I researched this phenomenon by event-study methodology which has been quite popular also in earlier studies. I have com-pared parent and spin-off stock performance in order to reveal potential value gains for investors. Parent company is analyzed also from the announcement period where we find strong positive abnormal returns associated with announcement of spin-offs. However by comparing spin-off execution period abnormal returns I find that spin-offs performed worse than their former parents. I find no evidence that in short term spin-offs were valued more than their former parents by investors.
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spellingShingle Vilppula, Joona Corporate spin-offs value creation : parent & spin-off view Corporate Spin-Offs Corporate Restructuring Event-study M&A Portfolio restruc-turing Organizational restructuring Financial restructuring Value creation Laskentatoimi Accounting 20421 yritysjärjestelyt organisaatiot organisaatiomuutokset
title Corporate spin-offs value creation : parent & spin-off view
title_full Corporate spin-offs value creation : parent & spin-off view
title_fullStr Corporate spin-offs value creation : parent & spin-off view Corporate spin-offs value creation : parent & spin-off view
title_full_unstemmed Corporate spin-offs value creation : parent & spin-off view Corporate spin-offs value creation : parent & spin-off view
title_short Corporate spin-offs value creation
title_sort corporate spin offs value creation parent spin off view
title_sub parent & spin-off view
title_txtP Corporate spin-offs value creation : parent & spin-off view
topic Corporate Spin-Offs Corporate Restructuring Event-study M&A Portfolio restruc-turing Organizational restructuring Financial restructuring Value creation Laskentatoimi Accounting 20421 yritysjärjestelyt organisaatiot organisaatiomuutokset
topic_facet 20421 Accounting Corporate Restructuring Corporate Spin-Offs Event-study Financial restructuring Laskentatoimi M&A Organizational restructuring Portfolio restruc-turing Value creation organisaatiomuutokset organisaatiot yritysjärjestelyt
url https://jyx.jyu.fi/handle/123456789/47080 http://www.urn.fi/URN:NBN:fi:jyu-201509173137
work_keys_str_mv AT vilppulajoona corporatespinoffsvaluecreationparentspinoffview