How does market react to corporate spin-offs in Australia?
نویسندگان
چکیده
منابع مشابه
Capital Structure in Corporate Spin-offs
and an anonymous referee for helpful comments and suggestions. Abstract This paper investigates how firms determine the capital structure of a subsidiary that is divested in a spin-off. In a spin-off, the parent divides the assets of the firm and chooses the capital structure for the new, stand-alone entity. Unlike the firms in other capital structure studies, the subsidiary's leverage ratio is...
متن کاملAre Corporate Spin-offs Prone to Insider Trading?∗
Recent research has documented empirical evidence of informed trading ahead of major corporate events such as earnings announcements, mergers and acquisitions and corporate bankruptcies. However, no such evidence exists ahead of corporate spinoffs (SP). Using a sample of 426 corporate SPs from 1996 to 2013, we document pervasive activity in options of the parent company, but not in stocks, that...
متن کاملAre Corporate Spin-offs Prone to Insider Trading?∗ Preliminary Draft
Recent research has documented empirical evidence of informed trading ahead of major corporate events such as earnings announcements, mergers and acquisitions (M&A) and corporate bankruptcies. Surprisingly, however, no such evidence exists ahead of corporate divestiture or spinoff (SP) announcements. This is noteworthy because the parent company’s stock usually experiences a significant price j...
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In a risk-neutral stochastic environment where bankruptcy is possible, it is well-established that coinsurance incentives may lead creditors to prefer mergers over spin-offs, while shareholders may prefer spin-offs. This paper shows that there are two distinct reasons for this. One is due to the concavity of the debt payoff function in the face value of the debt, while the other arises from imp...
متن کاملOpportunity Spin-offs and Necessity Spin-offs
Necessity spin-offs are organized by employees of incumbent firms to escape deteriorating job conditions. This paper proposes a conceptual model of the spin-off process. Necessity spin-offs are distinguished from opportunity spin-offs on the basis of their triggering events. An empirical analysis of German laser spin-offs traces differences in the performance and determinants of the two types o...
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ژورنال
عنوان ژورنال: Journal of Asian Business and Economic Studies
سال: 2017
ISSN: 2615-9112
DOI: 10.24311/jabes/2017.24.1.07