The Study of Spin-offs Regulations and the Spin-offs Announcement Effects

• Main Authors: Hsin-Yi Chien, 簡歆怡
• Other Authors: Wen-Cheng Hsiao
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/7m3a8d

碩士 === 銘傳大學 === 管理研究所碩士在職專班 === 93 === The major purpose of this study is to discuss spin-offs related regulations and to analyze the spin-offs announcement effects. The study investigates the possible existence of abnormal return via the event study methodology, and checks the changes of systematic risks before and after the spin-offs occur. The firms investigated are those who have adopted the current simplified spin-offs regulations and have the divested firms going for initial public offerings (IPOs) from April 2001 to March 2005. The announcement effects on returns of stock prices investigated are the announcement on the spin-offs, the announcement of the splitting date, and the announcement of the listing date for the divested firms. The findings of the study are as followed. Firstly, although abnormal returns exist, they are not statistically supported. Secondly, the cumulative abnormal returns of the first two events exist but do not offer strong evidence. The possible reasons can be that investors are doubtful on the success of divestures. The results of event three show the existence of announcement effects. Finally, the study finds that the systematic risks before and after divestures for the listing firms indicate significant differences.