Pennsylvania State University and Emory University, respectively. This paper has benefited greatly from the constructive criticisms of William Beranek, Joseph Sinkey, and participants of the Pennsylvania State Finance Workshop. We are also grateful to Stephen Brown for his assistance in the statistical methodology.
The Effect of Voluntary Spin-off Announcements on Shareholder Wealth
Article first published online: 30 APR 2012
1983 The American Finance Association
The Journal of Finance
Volume 38, Issue 5, pages 1597–1606, December 1983
How to Cite
MILES, J. A. and ROSENFELD, J. D. (1983), The Effect of Voluntary Spin-off Announcements on Shareholder Wealth. The Journal of Finance, 38: 1597–1606. doi: 10.1111/j.1540-6261.1983.tb03843.x
- Issue published online: 30 APR 2012
- Article first published online: 30 APR 2012
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.