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The Effect of Voluntary Spin‐off Announcements on Shareholder Wealth
Author(s) -
MILES JAMES A.,
ROSENFELD JAMES D.
Publication year - 1983
Publication title -
the journal of finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 18.151
H-Index - 299
eISSN - 1540-6261
pISSN - 0022-1082
DOI - 10.1111/j.1540-6261.1983.tb03843.x
Subject(s) - shareholder , spin offs , monetary economics , stock price , business , stock (firearms) , turnover , spin (aerodynamics) , economics , finance , corporate governance , physics , materials science , industrial organization , series (stratigraphy) , biology , paleontology , management , metallurgy , thermodynamics
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.