Dyssynergy Effect of Voluntary Spinoffs and Market Efficiency

Date

1997

Author

Yüce, Ayşe

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The exccss returns associated with spinoff announcements between 1980 and 1988 are investigated. It is found that spinoff announcements continued to create excess returns reaching a maximum of 2.88%, with a Z statistic of 8.22, between the period of one day before the announcement and the announcement date. A logit model is formed to investigate the relation between spinoff decision of companies and their asset growth rates. The results show that asset growth rate is a significant determinant of spinoff decision with a p value of 0.075.

URI

https://hdl.handle.net/11511/112611

Collections

Department of Business Administration, Article