The sources of spinoff equity gains: takeover premiums or operating gains

Detalhes bibliográficos
Autor(a) principal: Silberman, Marcus
Data de Publicação: 1996
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Institucional do FGV (FGV Repositório Digital)
Texto Completo: http://hdl.handle.net/10438/12338
Resumo: Although the existence of spinoff equity gains is well documented, their source remains controversial. Arnong many potential causes, the literature suggests that spinoff equity gains could arise from expected tax benefits, expected takeover premia, operating performance improvement or from refocusing benefits. This paper investigates the link between spinoff announcement and post completion equity gains and post spinoff operating performance changes, takeover activity and refocusing benefits. The results indicate that spinoff announcement retums reflect anticipated takeover premiums as well as expected operating performance gains and refocusing benefits unrelated to operating performance. However, only the parent's operating performance gains are anticipated at the spinoff announcement. We find that post spinoff equity gains are driven mostly by operating performance changes for both parents and spun off subsidiaries. Takeover activity and unrelatedness of business lines between parent and subsidiary expIain littIe of post spinoff equity gains. OveralI, the data suggests that spinoffs equity gains mostly reflect anticipated real economic gains in terms of improved operating performance, and to a lesser extent takeover premium and refocusing benefit.
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spelling Silberman, MarcusEscolas::EPGEFGV2014-11-07T10:39:01Z2014-11-07T10:39:01Z1996-05-16http://hdl.handle.net/10438/12338Although the existence of spinoff equity gains is well documented, their source remains controversial. Arnong many potential causes, the literature suggests that spinoff equity gains could arise from expected tax benefits, expected takeover premia, operating performance improvement or from refocusing benefits. This paper investigates the link between spinoff announcement and post completion equity gains and post spinoff operating performance changes, takeover activity and refocusing benefits. The results indicate that spinoff announcement retums reflect anticipated takeover premiums as well as expected operating performance gains and refocusing benefits unrelated to operating performance. However, only the parent's operating performance gains are anticipated at the spinoff announcement. We find that post spinoff equity gains are driven mostly by operating performance changes for both parents and spun off subsidiaries. Takeover activity and unrelatedness of business lines between parent and subsidiary expIain littIe of post spinoff equity gains. OveralI, the data suggests that spinoffs equity gains mostly reflect anticipated real economic gains in terms of improved operating performance, and to a lesser extent takeover premium and refocusing benefit.engEscola de Pós-Graduação em Economia da FGVSeminários de pesquisa econômica da EPGETodo cuidado foi dispensado para respeitar os direitos autorais deste trabalho. Entretanto, caso esta obra aqui depositada seja protegida por direitos autorais externos a esta instituição, contamos com a compreensão do autor e solicitamos que o mesmo faça contato através do Fale Conosco para que possamos tomar as providências cabíveisinfo:eu-repo/semantics/openAccessThe sources of spinoff equity gains: takeover premiums or operating gainsinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleEconomiaSociedades comerciais - Finançasreponame:Repositório Institucional do FGV (FGV Repositório Digital)instname:Fundação Getulio Vargas (FGV)instacron:FGVORIGINAL000322370.pdf000322370.pdfapplication/pdf1116051https://repositorio.fgv.br/bitstreams/a4c254dc-758d-4e81-a846-ad760c49cb04/downloadbb7bbf54dffd84b691010a24a8f475e6MD51LICENSElicense.txtlicense.txttext/plain; charset=utf-84707https://repositorio.fgv.br/bitstreams/05f00d73-05ff-4ad7-bbfa-08d908f83106/downloaddfb340242cced38a6cca06c627998fa1MD52TEXT000322370.pdf.txt000322370.pdf.txtExtracted 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dc.title.eng.fl_str_mv The sources of spinoff equity gains: takeover premiums or operating gains
title The sources of spinoff equity gains: takeover premiums or operating gains
spellingShingle The sources of spinoff equity gains: takeover premiums or operating gains
Silberman, Marcus
Economia
Sociedades comerciais - Finanças
title_short The sources of spinoff equity gains: takeover premiums or operating gains
title_full The sources of spinoff equity gains: takeover premiums or operating gains
title_fullStr The sources of spinoff equity gains: takeover premiums or operating gains
title_full_unstemmed The sources of spinoff equity gains: takeover premiums or operating gains
title_sort The sources of spinoff equity gains: takeover premiums or operating gains
author Silberman, Marcus
author_facet Silberman, Marcus
author_role author
dc.contributor.unidadefgv.por.fl_str_mv Escolas::EPGE
dc.contributor.affiliation.none.fl_str_mv FGV
dc.contributor.author.fl_str_mv Silberman, Marcus
dc.subject.area.por.fl_str_mv Economia
topic Economia
Sociedades comerciais - Finanças
dc.subject.bibliodata.por.fl_str_mv Sociedades comerciais - Finanças
description Although the existence of spinoff equity gains is well documented, their source remains controversial. Arnong many potential causes, the literature suggests that spinoff equity gains could arise from expected tax benefits, expected takeover premia, operating performance improvement or from refocusing benefits. This paper investigates the link between spinoff announcement and post completion equity gains and post spinoff operating performance changes, takeover activity and refocusing benefits. The results indicate that spinoff announcement retums reflect anticipated takeover premiums as well as expected operating performance gains and refocusing benefits unrelated to operating performance. However, only the parent's operating performance gains are anticipated at the spinoff announcement. We find that post spinoff equity gains are driven mostly by operating performance changes for both parents and spun off subsidiaries. Takeover activity and unrelatedness of business lines between parent and subsidiary expIain littIe of post spinoff equity gains. OveralI, the data suggests that spinoffs equity gains mostly reflect anticipated real economic gains in terms of improved operating performance, and to a lesser extent takeover premium and refocusing benefit.
publishDate 1996
dc.date.issued.fl_str_mv 1996-05-16
dc.date.accessioned.fl_str_mv 2014-11-07T10:39:01Z
dc.date.available.fl_str_mv 2014-11-07T10:39:01Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
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url http://hdl.handle.net/10438/12338
dc.language.iso.fl_str_mv eng
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dc.relation.ispartofseries.por.fl_str_mv Seminários de pesquisa econômica da EPGE
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dc.publisher.none.fl_str_mv Escola de Pós-Graduação em Economia da FGV
publisher.none.fl_str_mv Escola de Pós-Graduação em Economia da FGV
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