This study examines the influence of equity carve-out (ECO) announcements on the share prices of parent firms using a hand-collected sample of 64 ECO announcements made within the time period from year 2000 to year 2008. It is found that ECOs have a positive impact on parent firms' share prices around the announcement period. This suggests that investors in Malaysian stock market welcome ECOs as good news. The results of the entire sample of this study are generally consistent with other researchers' findings. However, using the subsamples grouped by the ultimate consequence of the proposed listing in the ECO announcements, the market responses of two subgroups are not the same. The cumulate average abnormal returns of a subsample, which consists of the parent firms that ultimately carved out their subsidiaries, are significant positive before the announcement and then decrease soon after the announcement date. On the other hand, the uptrend of the cumulative average abnormal returns of another subgroup, which consists of parent firms that failed to carve out their subsidiaries, continues for a longer period after the announcement date.