Impact of corporate spin-offs on share price movement empirical evidence from India
By: Rakshit, Debdas
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Contributor(s): Banerjee, Samrat.
Publisher: Kolkata CMA Kaushik Banerjee 2022Edition: Vol.57(10), Oct.Description: 83-87p.Subject(s): Construction Engineering and Management (CEM)Online resources: Click here
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Management and accountant journalSummary: The present study focuses on the effect of spin-off announcements on the stock returns of 24 sample demerged companies in India for the period from 2009-10 to 2018-19. For this purpose, the market model of event study methodology has been applied. The impact of the spin-off is statistically significant on cumulative average abnormal returns of these sample firms for time windows (-2, +2) and (-10, +10) which are 5.088 per cent and 6.609 per cent , respectively, at a 5 per cent level of significance. This study supports the statement that changes in stock returns are strongly associated with the spin-off announcements.
| Item type | Current location | Call number | Status | Date due | Barcode | Item holds |
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Articles Abstract Database
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School of Engineering & Technology (PG) Archieval Section | Not for loan | 2023-1529 |
The present study focuses on the effect of spin-off announcements on the stock returns of 24 sample demerged companies in India for the period from 2009-10 to 2018-19. For this purpose, the market model of event study methodology has been applied. The impact of the spin-off is statistically significant on cumulative average abnormal returns of these sample firms for time windows (-2, +2) and (-10, +10) which are 5.088 per cent and 6.609 per cent , respectively, at a 5 per cent level of significance. This study supports the statement that changes in stock returns are strongly associated with the spin-off announcements.
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