Not logged in.
Quick Search - Contribution
Contribution Details
| Type | Bachelor's Thesis |
| Scope | Discipline-based scholarship |
| Title | The Immediate Effect of Spin-off Announcements on Share Performance |
| Organization Unit | |
| Authors |
|
| Supervisors |
|
| Language |
|
| Institution | University of Zurich |
| Faculty | Faculty of Business, Economics and Informatics |
| Number of Pages | 58 |
| Date | 2022 |
| Abstract Text | This thesis examines the shareholder wealth effect of spin-off announcements in the short and medium-term. I study the short-term abnormal returns based on a sample of 184 parent companies that announced a spin-off between 2000-2017. My findings indicate that spin-off announcements generate a positive cumulative adjusted average return of 4.15% within a twoday event window after the spin-off announcement. The abnormal returns are higher for larger spin-off announcements. Further, employing a Fama French three-factor model, I investigate the share performance of parent companies for up to 18 months after their spin-off announcement and find that, on average, parent companies generate a significant overperformance within the medium-term. |
| Export |
BibTeX
|