The performance effects of European demergers
By: Thomas Kirchmaier.
Contributors: London School of Economics and Political Science. Centre for Economic Performance.
Series: Discussion paper ;; no. 566; Discussion paper (London School of Economics and Political Science. Centre for Economic Performance : Online) ;; no. 566.
Publisher: Centre for Economic Performance, London School of Economics and Political Science
Published: 2003
Place of publication: [London]
Language: eng
Format: Electronic resource
Subjects: Corporate divestiture -- Europe.; Corporate reorganizations -- Europe.; Corporations -- Valuation -- Europe.; Securities -- Prices.
Description: "This paper examines security price reactions of European demergers. For a period ranging from one and a half years prior to the demerger announcement through to three years after the execution date, the relative performance of the parent, spin-off and the combined effect is analysed relative to the overall market performance. Significant announcement effects were established for a sample of 48 European demergers. In addition, significant positive long-term value creation, in particular in year 2 after the demerger, was found for the spin-off but not for the parent firm. While size has, on average, a decisive but inverse impact on performance for both parent and spin-off, takeover activity does not"--London School of Economics web site.
Notes: Includes bibliographical references.
Title from summary page as viewed on 1/7/2005.
Also available in print.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.