Impact of the Type of Corporate Spin-Off on Growth

Authors


Els Van de Velde, tel.: (+32) 9-264-89-82; e-mail: els.vandevelde@ugent.be, to Johan Bruneel at J.bruneel@imperial.ac.uk and johan.bruneel@ugent.be, and to Bart Clarysse at b.clarysse@imperial.ac.uk and bart.clarysse@ugent.be.

Abstract

Although previous research shows that corporate spin-offs contribute to economic growth, few studies link growth to the type of corporate spin-off. We distinguish between three types of corporate spin-offs: incumbent-backed, opportunity, and necessity spin-offs. Using empirical data on 46 corporate spin-offs in Flanders, we find that opportunity spin-offs outperform the other two types. By identifying the type of corporate spin-offs, this study aims to add to our knowledge on the relationship between spin-off type and firm growth.

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