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Corporate Spin-Offs, Their Price Reactions And Determinants In Malaysia, Chung-Sin Yoon, Mohamed Ariff
Corporate Spin-Offs, Their Price Reactions And Determinants In Malaysia, Chung-Sin Yoon, Mohamed Ariff
Mohamed Ariff
Spin-off as a form of financial restructuring has been examined in the US and the UK but not in other markets. This is a first study outside those markets. The evidence from a sample of 85 spin-off cases in Malaysia reveals that both the parent and the spin-off company stocks gain significant positive abnormal returns: parent firms earn smaller value while the spin-off firm gains substantially, much greater than is documented in other markets. Examining the factors correlated with the size of the spin-off effect, we find the abnormal returns are positively correlated with market capitalization and negatively correlated with …