Kirchmaier, Thomas ORCID: 0000-0002-8938-2206 (2003) The performance effects of European demergers. CEPDP (566). London School of Economics and Political Science. Centre for Economic Performance, London, UK. ISBN 0753016265
|
PDF
Download (265kB) | Preview |
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) |
---|---|
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: | 11 Dec 2024 18:34 |
URI: | http://eprints.lse.ac.uk/id/eprint/20047 |
Actions (login required)
View Item |