Firm Performance and focus:Stock Market Performance Following Spinoffs
碩士 === 長庚大學 === 企業管理研究所 === 94 === This paper studies all the public traded companies which spins off subsidiaries during the 2000-2005 period using matching firm methodology. Some of these companies spin off a subsidiary to focus on core business while others do so for another reason. Thus, we divi...
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| Format: | Others |
| Language: | zh-TW |
| Published: |
2005
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| Online Access: | http://ndltd.ncl.edu.tw/handle/13335699513992954729 |
| Summary: | 碩士 === 長庚大學 === 企業管理研究所 === 94 === This paper studies all the public traded companies which spins off subsidiaries during the 2000-2005 period using matching firm methodology. Some of these companies spin off a subsidiary to focus on core business while others do so for another reason. Thus, we divide the sample into two groups, focus- increasing spinoffs and non-focus- increasing spinoffs. We test for abnormal returns during the announcement period of spin-off. We also test if the stock market performance and operating performance of spinoffs are significantly different between the two groups.
The result shows that there are negative returns for both groups during the announcement period. The magnitude of the negative returns is significantly larger for the non-focus- increasing spin-off group during the announcement period, pre and post spin-off. The results for the change in operating performance are consistent with those for the stock market performance.
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