search query: @author Denis, D. J. / total: 11
reference: 2 / 11
| Author: | Ahn, S. Denis, D. J. |
| Title: | Internal capital markets and investment policy: evidence from corporate spinoffs |
| Journal: | Journal of Financial Economics
2004 : MAR, VOL. 71:3, p. 489-516 |
| Index terms: | Diversification Investment Spin-offs |
| Freeterms: | Internal capital markets |
| Language: | eng |
| Abstract: | Changes in investment policy is analyzed by following 106 spinoffs between 1981 and 1996. Pre-spinoff, the sample companies are valued at a discount and invest less in their high q segments than do their single-segment peers. Post-spinoff, there is a significant increase in measures of investment efficiency and the diversification discount is eliminated. What is more, changes in excess value around the spinoff are positively related to changes in measures of investment efficiency. |
SCIMA