The effect of voluntary sell-off announcements on shareholder wealth
Article Abstract:
Sell-off activities occur when corporations sell part of their assets, such as a segment or a division, while continuing to exist in essentially the same form. The effect of voluntary sell-offs on stock returns is examined, with it shown from a sample of over 1,000 sell-off events that both sellers and buyers earn significant positive excess returns from such transactions, with the excess returns earned by buyers smaller than those earned by sellers. Evidence exists that a period of significant negative returns for the sellers precedes sell-off announcements, suggesting that sellers generally performed poorly before their sell-off activities.
Publication Name: Journal of Finance
Subject: Business
ISSN: 0022-1082
Year: 1985
User Contributions:
Comment about this article or add new information about this topic:
The Effect of Voluntary Spin-Off Announcements on Shareholder Wealth
Article Abstract:
Voluntary spin-off announcements are analyzed to determine their effect on shareholder wealth from a sample of fifty-five spin-offs. The spin-off announcements precede a period of abnormally positive returns. Larger spin-offs have a significantly stronger effect on shareholder wealth than small spin-offs.
Publication Name: Journal of Finance
Subject: Business
ISSN: 0022-1082
Year: 1983
User Contributions:
Comment about this article or add new information about this topic:
Does shareholder composition matter? Evidence from the market reaction to corporate earnings announcements
Article Abstract:
The impact of institutional investor composition upon stock prices during corporate earnings disclosure is discussed.
Publication Name: Journal of Finance
Subject: Business
ISSN: 0022-1082
Year: 2003
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: The effects of various thicknesses of chemical protective gloves on manual dexterity
- Abstracts: The effect of market segmentation on stock prices: the China syndrome. Cointegration, efficiency and forecasting in the currency market
- Abstracts: The impact of dividends, debt and investment on valuation models. Determinants of capital structure and adjustment to long run target: evidence from UK company panel data
- Abstracts: The Assessment of Company Solvency and Performance using a Statistical Model. LDC credit-risk forecasting and banker judgement
- Abstracts: The effects of downsizing on organizational buying behavior: an empirical investigation. Categorizing cognitive responses: An Empirical investigation of the cognitive intent congruency between independent raters and original subject raters