Value creation from Corporate Restructuring
Wealth effects and value channels of European spin-offs over 1998-2007
- Editore:
LAP Lambert Acad. Publ.
- EAN:
9783843364331
- ISBN:
3843364338
- Pagine:
- 96
- Formato:
- Paperback
- Lingua:
- Tedesco
Descrizione Value creation from Corporate Restructuring
This book describes the study on shareholder wealth effects of European spin-offs in the period 1998 until 2007. The results show that in 50% of all cases, shareholders of parent firms face positive wealth effects around the announcement date of a European spin-off. The results in this book show also that shareholders are not better off within one ¿and two years after a spin-off transaction since returns in excess of matching firms are strongly insignificant for parent, off-spring and pro-forma combined firms. Nevertheless, managers whose remuneration package is linked to the operating performance of the firm may benefit substantially from a spin-off transaction. Seven value channels through which shareholder wealth might be created in European spin-offs are examined: improvement of corporate focus, reduction of information asymmetry, improvement of geographical focus, impact of corporate governance, the relative size of the spin-off, the timing effect of spin-offs and the presence of a takeover threat prior to the spin-off announcement. This book provides modern insights about shareholder wealth effects in European spin-off transactions and announcements.
