Spinoffs Impact on the Parent Company
Master thesis

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Date
2024Metadata
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- Master of Science [1822]
Abstract
This study examines the impact of corporate spinoffs on the stock prices of parent
companies in the short and long-term, analyzing a dataset of 99 American spinoffs
from 2000 to 2020. An event study reveals significant positive abnormal returns
around the event dates, indicating initial market optimism. However, longitudinal
regression analysis shows that these early gains do not lead to sustained long-term
benefits. The findings suggests that while spinoffs initially boost shareholder
value, their long-term effects remain inconclusive. This study highlights the
complexity of spinoff and their varying impacts on parent companies.
Description
Masteroppgave(MSc) in Master of Science in Business, Finance - Handelshøyskolen BI, 2024