Corporate focus and value creation: Evidence from spinoffs

Journal of Financial Economics

Volumn 45, Issue 2, 1997, Pages 257-281

  Daley, Lane ^a   Mehrotra, Vikas ^a   Sivakumar, Ranjini ^a  

^a UNIVERSITY OF ALBERTA   (Canada)

Author keywords

Cross subsidization; Divestiture; Focus; Spinoff

Indexed keywords

EID: 0031208943     PISSN: 0304405X     EISSN: None     Source Type: Journal    
DOI: 10.1016/S0304-405X(97)00018-4     Document Type: Article

References (21)

1. Barber, B.M., Lyon, J.D., 1996. Detecting abnormal operating performance: the empirical power and specification of test-statistics. Journal of Financial Economics 41, 359-399.
2. Berger, P.G., Ofek, E., 1995. Diversification's effect on firm value. Journal of Financial Economics 37, 39-65.
3. Comment, R., Jarrell, G.A., 1995. Corporate focus and stock returns. Journal of Financial Economics 37, 67-87.
4. Cusatis, P.J., Miles, J.A., Woolridge, J.R., 1993. Restructuring through spinoffs: the stock market evidence. Journal of Financial Economics 33, 293-311.
5. Davidson, W.N., III McDonald, J.L., 1987. Evidence of the effect on shareholder wealth of corporate spinoffs: the creation of royalty trusts. The Journal of Financial Research 10, 321-327.
6. Easterbrook, F.H., 1984. Two agency-cost explanations of dividends. The American Economic Review 74, 650-659.
7. Fama, E.F., French, K., 1995. Size and book-to-market factors in earnings and returns. Journal of Finance 50, 131-155.
8. Healy, P.M., Palepu, K.G., 1993. The effect of firms' financial disclosure strategies on stock prices. Accounting Horizons 7, 1-11.
9. Healy, P.M., Palepu, K.G., Ruback, R.S., 1992. Does corporate performance improve after mergers. Journal of Financial Economics 31, 135-175.
10. Hite, G.L., Owers, J.E., 1983. Security price reactions around corporate spinoff announcements. Journal of Financial Economics 12, 409-436.
11. Jensen, M.C., 1986. Agency costs of free cash flow, corporate finance, and takeovers. American Economic Review 76, 323-329.
12. John, K., Ofek, E., 1995. Asset sales and increases in focus. Journal of Financial Economics 37, 105-126.
13. John, T., 1993. Optimality of spinoffs and allocation of debt. Journal of Financial and Quantitative Analysis 28, 139-160.
14. Kudla, R.J., McInish, T.H., 1983. Valuation consequences of corporate spinoffs. Review of Business and Economic Research 18, 71-77.
15. Kudla, R.J., McInish, T.H., 1988. Divergence of opinion and corporate spinoffs. Quarterly Review of Economics and Business 28, 20-29.
16. Lang, L., Poulsen, A., Stultz., R., 1995. Asset sales, firm performance, and the agency costs of managerial discretion. Journal of Financial Economics 37, 3-37.
17. Miles, J.A., Rosenfeld, J.D., 1983. An empirical analysis of the effects of spinoff announcements on shareholder wealth. Journal of Finance 38, 1597-1606.
18. Parrino, R., 1997. Spinoffs and wealth transfers: the Marriott case. Journal of Financial Economics 43, 241-274.
19. Schipper, K., Smith, A., 1983. Effects of recontracting on shareholder wealth: the case of voluntary spinoffs. Journal of Financial Economics 12, 437-467.
20. Schipper, K., Smith, A., 1986. A comparison of equity carve-outs and seasoned equity offerings: share price effects and corporate restructuring. Journal of Financial Economics 15, 153-186.
21. Vijh, A.M., 1994. The spinoff and merger ex-date effects. Journal of Finance 69, 581-609.