Analysis on the Motivation and Performance of Spin-offs and Carve-outs in Taiwan

• Main Authors: Cheng-Chuan Li, 李政娟
• Other Authors: Cheng-Yi Shiu
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/36750447228879158844

碩士 === 國立中央大學 === 財務金融學系碩士在職專班 === 100 === This study investigates the stock price impact on the spin-off declaration and the long-term stock and operating performance of firms following the spin-off. The empirical results can be summarized in the following points：(1) The announcement abnormal return of the parent firms is insignificantly negative. (2) For the long-run post-performance, the parent corporations outperform their benchmark and the subsidiary firms underperform their peers. (3) The operating performance of the parent corporations improves materially after the break up of the operational divisions. Overall, the empirical results confirm that the operation performance of the parent corporations is improved by the corporate focus, while the performance of spun-off firms is not improved. For the motivation, the parent corporations have improved their operating performance, for both of with-in industry and cross-industry spin-offs. On the other hand, the performance of the subsidiary firms is not dramatically improved.