What You Need To Know Before Buying Into A Spin-OffRupert Hargreaves
Is it wise to invest in a spin-off? The evidence is mixed.
A much-cited study, published in 1992 and titled Spin-off performance: A case of overstated expectations? Found that the performance of divested business units often deteriorated following the spin, as these units were divested due to their underperformance. The parent conducted the spin to boost underlying performance. However, a more recent study, Firm performance and focus: long-run stock market performance following spinoffs . . .
This content is exclusively for paying members. Sign up here
If you are subscribed and having an account error please clear cache and cookies if that does not work email email@example.com or click chat