Which spin‐offs generate value and performance improvements?

摘要

Using all completed spin‐offs in twelve European countries between 1989 and 2005 we show that spin‐off decisions are often triggered by firm’s governance earth‐quakes, such as an appointment of a new CEO or a takeover threat. Abnormal long‐run stock returns and operating performance are observed for spin‐off firms only, and mostly for internally‐grown business units and parent‐related (non‐focusing) subsidiaries. We find no evidence that post‐spin‐off mergers of either parents or subsidiaries enhance long‐term performance, or that focus‐increasing spin‐offs lead to efficiency improvements.