How does market react to corporate spin-offs in Australia?
While numerous studies on spin-off have been done in the US and Europe, little efforts have been directed to research this area of cor-porate finance in Australia. This study investigates how market re-acts to corporate spin-offs in this country. We employ traditional event study methodology and fin...
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University of Economics Ho Chi Minh City
2023
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| Truy cập trực tuyến: | http://jabes.ueh.edu.vn/Home/SearchArticle?article_Id=b293a630-7d92-469a-afbc-ff8cee2c7f1c https://scholar.dlu.edu.vn/thuvienso/handle/DLU123456789/115540 |
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oai:scholar.dlu.edu.vn:DLU123456789-1155402023-03-08T03:56:56Z How does market react to corporate spin-offs in Australia? Nguyen, Xuan Truong While numerous studies on spin-off have been done in the US and Europe, little efforts have been directed to research this area of cor-porate finance in Australia. This study investigates how market re-acts to corporate spin-offs in this country. We employ traditional event study methodology and find that market reacts strongly and positively to the announcements of spin-offs. Specifically, the cu-mulative average abnormal return over the 3-day event window is 3.58%. The cumulative average abnormal return for spin-offs by companies that increase their industrial focus is 4.12% and 3.33% for non-focused increasing spin-offs. Nevertheless, the difference between these two subgroups is statistically insignificant. Multivari-ate regressions provide evidence that high pre-leverage firms benefit more from spin-offs. 2023-03-08T03:56:56Z 2023-03-08T03:56:56Z 2017 Article 2615-9112 http://jabes.ueh.edu.vn/Home/SearchArticle?article_Id=b293a630-7d92-469a-afbc-ff8cee2c7f1c https://scholar.dlu.edu.vn/thuvienso/handle/DLU123456789/115540 10.24311/jabes/2017.24.1.07 en Journal of Asian Business and Economic Studies, Volume 24, Issue 01; p. 54-74 application/pdf University of Economics Ho Chi Minh City |
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Thư viện Trường Đại học Đà Lạt |
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Thư viện số |
| language |
English |
| description |
While numerous studies on spin-off have been done in the US and Europe, little efforts have been directed to research this area of cor-porate finance in Australia. This study investigates how market re-acts to corporate spin-offs in this country. We employ traditional event study methodology and find that market reacts strongly and positively to the announcements of spin-offs. Specifically, the cu-mulative average abnormal return over the 3-day event window is 3.58%. The cumulative average abnormal return for spin-offs by companies that increase their industrial focus is 4.12% and 3.33% for non-focused increasing spin-offs. Nevertheless, the difference between these two subgroups is statistically insignificant. Multivari-ate regressions provide evidence that high pre-leverage firms benefit more from spin-offs. |
| format |
Article |
| author |
Nguyen, Xuan Truong |
| spellingShingle |
Nguyen, Xuan Truong How does market react to corporate spin-offs in Australia? |
| author_facet |
Nguyen, Xuan Truong |
| author_sort |
Nguyen, Xuan Truong |
| title |
How does market react to corporate spin-offs in Australia? |
| title_short |
How does market react to corporate spin-offs in Australia? |
| title_full |
How does market react to corporate spin-offs in Australia? |
| title_fullStr |
How does market react to corporate spin-offs in Australia? |
| title_full_unstemmed |
How does market react to corporate spin-offs in Australia? |
| title_sort |
how does market react to corporate spin-offs in australia? |
| publisher |
University of Economics Ho Chi Minh City |
| publishDate |
2023 |
| url |
http://jabes.ueh.edu.vn/Home/SearchArticle?article_Id=b293a630-7d92-469a-afbc-ff8cee2c7f1c https://scholar.dlu.edu.vn/thuvienso/handle/DLU123456789/115540 |
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