Gains from equity carve-outs and subsequent events

研究成果: ジャーナルへの寄稿学術誌査読

17 被引用数 (Scopus)


This study examines why the stock price of a parent company reacts positively to the announcement of a carve-out. The study also focuses on the gains associated with the combinations of carve-outs and each of four subsequent events: M&A activity, secondary offerings, spin-offs, and reacquisitions. The study finds that these secondary events are useful in evaluating the potential market reactions to carve-out announcements. By analyzing 201 carve-outs conducted by nonfinancial firms in the U.S., this study finds that the stock market reacts favorably toward the stock of a parent company when the parent-subsidiary relationship is preserved after a carve-out. However, this reaction changes when secondary events occur. To be precise, the market does not have a significantly positive reaction to the parent company's stock when the announcement concerns only M&A. These results indicate that the stock market expects secondary events when companies announce carve-outs and that it evaluates the combination of events upon the announcement of the carve-outs. In addition, this study finds that the market expects M&A as a secondary event.

ジャーナルJournal of Business Research
出版ステータス出版済み - 11月 2009

!!!All Science Journal Classification (ASJC) codes

  • マーケティング


「Gains from equity carve-outs and subsequent events」の研究トピックを掘り下げます。これらがまとまってユニークなフィンガープリントを構成します。