Please use this identifier to cite or link to this item:
Title: The performance of European equity carve-outs
Authors: Dasilas, Apostolos
Leventis, Stergios
metadata.dc.contributor.other: Leventis, Stergios
Type: Article
Subjects: FRASCATI::Social sciences::Economics and Business::Finance
Issue Date: Feb-2018
Source: Journal of Financial Stability
Volume: 34
First Page: 121
Last Page: 135
Abstract: In this paper we examine the valuation effects of equity carve-outs in Europe. We demonstrate that equity carve-out announcements yield significant abnormal returns for the shareholders of parent firms. This positive market reaction is stronger in countries that better protect minority shareholder rights. However, a remarkable price reversal is detected in the aftermath of a carve-out transaction that lasts up to two years. In contrast, parent-firm operating performance improves as long as the disposal of subsidiary assets is proven to be an optimal corporate decision. Subsidiaries stemming from the restructuring transaction also experience an initial positive market reaction which then reverses to severe price losses within a few months of the first day of listing.
ISSN: 1572-3089
Other Identifiers: 10.1016/j.jfs.2018.01.001
Appears in Collections:Department of Applied Informatics

Files in This Item:
File Description SizeFormat 
The performance of European equity carve-outs. Final.pdf944,82 kBAdobe PDFView/Open

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.