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The Market Success Of Corporate Spin-Offs: Do Ceo External Directorships, Age, And Their Interactions Matter?, Orhan Volkan Ozbek
The Market Success Of Corporate Spin-Offs: Do Ceo External Directorships, Age, And Their Interactions Matter?, Orhan Volkan Ozbek
School of Business Faculty Research
Corporate spin-offs have been a major “preferred” restructuring technique in the previous couple decades in the U.S. This corporate transaction aims to create value for both divesting firm and its subsidiary. This study examines an understudied interaction of CEO external directorships and age (as well as their direct effects) in the strategy literature on the change in market valuation of spun-off subsidiaries. By drawing our cases from the SDC Platinum database, we identified 138 completed corporate U.S. spin-offs that took place between 2000 and 2014. Our empirical analysis indicates that the number of CEO external directorships as well as having …