search query: @author Parrino, R. / total: 9
reference: 6 / 9
| Author: | Parrino, R. |
| Title: | Spinoffs and wealth transfers: The Marriott case |
| Journal: | Journal of Financial Economics
1997 : FEB, VOL. 43:2, p. 241-274 |
| Index terms: | FINANCIAL POLICY STRUCTURAL CHANGE AGENCIES COSTS CASE STUDIES |
| Language: | eng |
| Abstract: | The paper examines changes in shareholder and bondholder wealth resulting from the 1993 Marriott spin-off. It documents a wealth transfer from bondholders to shareholders and a decline in the total value of the firm following the spinoff announcement. Subsequent modifications to the spin-off plan reduced the bondholders' loss. The value of Marriott's debentures and notes, however, remained USD 194.6 million below their pre-announcement level on the distribution date. Industry-adjusted shareholder gains during the same period were only USD 80.6 million. Transaction costs and inefficiencies resulting from the spin-off explain much of the decline in the total value of the firm. |
SCIMA