Management & Information Systems Review (경영과정보연구)
- Volume 25
- /
- Pages.83-114
- /
- 2008
- /
- 1598-2459(pISSN)
- /
- 2733-4767(eISSN)
The Corporate Spinoffs and Long-run Stock Returns
기업분할의 장기성과에 대한 실증연구
- Hong, Dong-Hyun (SJCU) ;
- Lee, Deok-Hoon (Bucheon College) ;
- Hwang, Jae-Ho (Candidate of Graduate School of Business of Administration HUFS)
- Published : 2008.06.30
Abstract
We examine whether spinoffs improve long-run stock returns and analyze the factors of long run stock returns. The measures of long run stock returns are CAR(Cumulative Abnormal Returns) and BHAR(Buy and Hold Abnormal Returns). The expected factors of abnormal returns are methods of spinoffs, size, BV/MV, administrative costs, cashflow and Herfindahl index. We find that long-run returns of the case such as carve-out methods, small size, high BV/MV, low administrative costs, low cashflow and low Herfindahl index are larger than those of other cases. We show positive relationship between spinoffs and long-run stock returns(CAR and BHAR). The results supports spinoffs, as the methods of focusing on core business, are very usefulness of corporate restructuring.