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dc.contributor.author
Koulikidou, Kleopatra
en
dc.contributor.author
Sismanidou ,Maria
en
dc.date.accessioned
2015-04-08T12:09:26Z
dc.date.available
2015-09-27T06:05:09Z
dc.date.issued
2015-04-08
dc.identifier.uri
https://repository.ihu.edu.gr//xmlui/handle/11544/74
dc.rights
Default License
dc.title
Announcement wealth effects of corporate spin offs
en
heal.type
masterThesis
heal.secondaryTitle
Evidence from Europe and U.S.A
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heal.keyword
Subsidiary corporations
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heal.keyword
Subsidiary corporations--Valuation
en
heal.keyword
Dissertations, Academic
en
heal.keywordURI.LCSH
Spin offs
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heal.keywordURI.LCSH
abnormal returns
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heal.keywordURI.LCSH
event study
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heal.keywordURI.LCSH
long-term performance
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heal.language
en
heal.access
free
el
heal.license
http://creativecommons.org/licenses/by-nc/4.0
heal.recordProvider
School of Economics, Business Administration and Legal Studies, MSc in Banking and Finance
heal.publicationDate
2010-09
heal.bibliographicCitation
Koulikidou Kleopatra and Sismanidou Maria , 2010, Announcement wealth effects of corporate spin offs: evidence from Europe and U.S.A, Master's Dissertation, International Hellenic University
en
heal.abstract
This paper is going to analyze the announcement wealth effects for a sample of 250 spin offs, that took place in Western Europe and U.S.A., between January 2000 and December 2009. Using the event study methodology, we measure both the short-term and long-term reaction of firms announcing a spin off. The results reveal a positive and statistically significant cumulative abnormal return over a 3-day interval (-1, +1) of 6.18%. Looking at the industrial focus of spin offs, we find a cumulative abnormal return of 2.10% for the spin offs that increase their industrial focus and 4.17% for the non-focus increasing firms. Moreover, the results from the regression analysis show Return on Assets and EBITDA/Total Assets ratios are the main driving forces behind the excess returns of spin offs. Finally, we test the long-term performance of sample firms, parents and subsidiaries using financial ratios and compare this performance with a sample of matching firms.
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heal.tableOfContents
1. Introduction 6
2. Literature Review 9
3. Data Analysis 16
3.1. Sample selection 16
3.2. Descriptive statistics 16
3.3. Summary statistics 18
4. Methodology 21
4.1. Announcement period abnormal returns for the entire sample and sub-samples 21
4.2. Announcement period AAR’s and CAR’s based on industrial and geographical focus 23
4.3. Multivariate regression analysis of abnormal returns around announcement date 23
4.4. Long-term reaction 26
5. Empirical Results 30
5.1. Announcement period abnormal returns for the entire sample, U.S. and W. Europe’s sub-samples 30
5.1.1. AAR’s and CAR’s for the full sample based on industrial and geographical focus 35
5.2. Regression analysis of abnormal returns 37
5.3. Long-term performance 40
5.3.1. Changes in Return on Assets ratio 41
5.3.2. Changes in EBITDA/TA ratio 43
5.3.3. Changes in CAPEX/TA ratio 45
6. Conclusion 48
References 50
en
heal.advisorName
Dasilas, Dr Apostolos
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heal.committeeMemberName
Dasilas, Dr Apostolos
en
heal.committeeMemberName
Levis
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heal.committeeMemberName
Leventis
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heal.academicPublisher
School of Economics, Business Administration and Legal Studies, MSc in Banking and Finance
en
heal.academicPublisherID
ihu
heal.numberOfPages
52
heal.fullTextAvailability
true
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