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- W1982485251 abstract "We investigate the linkage between changes in firm value and changes in capital allocation efficiency resulting from dismantling internal capital markets via spinoffs. We find no evidence of wholesale misallocation of capital pre-spinoff. On the average, excess value increases following spinoffs. Furthermore, changes in excess value are positively linked to changes in capital allocational efficiency following spinoff. We find that spinoff announcement returns are greater (smaller) when the parent allocates capital to the unit to be spun off in a seemingly less (more) efficient manner. Divested division capital expenditures move toward industry levels after spinoff, regardless of their relative investment opportunities." @default.
- W1982485251 created "2016-06-24" @default.
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- W1982485251 date "2005-03-01" @default.
- W1982485251 modified "2023-09-23" @default.
- W1982485251 title "Dismantling internal capital markets via spinoff: effects on capital allocation efficiency and firm valuation" @default.
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- W1982485251 doi "https://doi.org/10.1016/s0929-1199(03)00060-9" @default.
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