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| Tekijä: | Maxwell, W. F. Rao, R. P. |
| Otsikko: | Do spin-offs expropriate wealth from bondholders? |
| Lehti: | Journal of Finance
2003 : OCT, VOL. 58:5, p. 2087-2108 |
| Asiasana: | Spin-offs Bond markets Shareholders |
| Kieli: | eng |
| Tiivistelmä: | A wealth transfer from bondholders is one of several hypotheses used to explain stockholder gains on the announcement of a spin-off. Using a larger sample with comprehensive bond data, the authors find evidence consistent with wealth expropriation. Bondholders, on average, suffer a significant negative abnormal return during the month of the spin-off announcement. In explaining the magnitude of the losses to bondholders, the authors find they are a function of the loss in collateral in the spun-off subsiduary and the level of financial risk of the parent firm. Lossess to bondholders tend to be more severe, the larger the gains to shareholders. |
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