An examination of the impact of equity carve-outs on stockholder and bondholder wealth

Thomas H. Thompson and Vince Apilado

Journal of Economics and Business, 2009, vol. 61, issue 5, pages 376-391

Abstract: This study provides a comprehensive initial evaluation of the wealth transfer hypothesis as applied to the carve-out announcement and partial IPO on stockholders and bondholders from 1983 to 2002. Using daily security prices we show that such combinations have multi-faceted wealth transfers and wealth creation. Consistent with existing theory, we observe a wealth increase for stockholders and bondholders in the carve-out announcement period. In the carve-out period, we report a wealth loss for parent stockholders and bondholders, but a gain for subsidiary stockholders.

Keywords: Carve-outs; Wealth; transfer (search for similar items in EconPapers)
Date: 2009

Downloads: (external link)
http://www.sciencedirect.com/science/article/B6V7T ... e7f835d7b9586a77381f
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:eee:jebusi:v:61:y::i:5:p:376-391

Access Statistics for this article

Journal of Economics and Business is edited by G. P. Szegö

More articles in Journal of Economics and Business from Elsevier
Series data maintained by Heidi Boesdal ().