Kirchmaier, Thomas (2003) The performance effects of European demergers. CEPDP (566). Centre for Economic Performance, London School of Economics and Political Science, London, UK. ISBN 0753016265
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Abstract
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.
| Item Type: | Monograph (Discussion Paper) |
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| Official URL: | http://cep.lse.ac.uk |
| Additional Information: | © 2003 Thomas Kirchmaier |
| Divisions: | Financial Markets Group Centre for Economic Performance |
| Subjects: | H Social Sciences > HD Industries. Land use. Labor |
| Date Deposited: | 28 Jul 2008 15:31 |
| Last Modified: | 26 Apr 2021 11:51 |
| URI: | http://eprints.lse.ac.uk/id/eprint/20047 |
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