The Effect of Voluntary Spin‐off Announcements on Shareholder Wealth
- Full Text PDF
- Author(s): JAMES A. MILES, JAMES D. ROSENFELD
- Published: Apr 30, 2012
- Pages: 1597-1606
- DOI: 10.1111/j.1540-6261.1983.tb03843.x
This paper presents estimates of the effect of a voluntary spin‐off announcement on shareholder wealth. The results show that spin‐off announcements have a positive influence on stock prices and that the relative increase in share price is greater for large spin‐offs than for small ones.