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Corporate Spin-Offs, Their Price Reactions and Determinants in Malaysia

Spin-off as a form of financial restructuring has been examined in the US and the UK but not in other markets.This is a first study outside those markets. The evidence from a sample of 85 spin-off cases in Malaysia reveals that both the parent and the spin-off company stocks gain significant positiv...

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Main Authors: Yoon, Chung-Sin, Ariff, Mohamed
Format: Article
Language:English
Published: Universiti Utara Malaysia 2007
Subjects:
HG Finance
Online Access:http://repo.uum.edu.my/25100/1/IJBF%205%201%202007%2083%20112.pdf
http://repo.uum.edu.my/25100/
http://ijbf.uum.edu.my/index.php/previous-issues/135-the-international-journal-of-banking-and-finance-ijbf-vol-5-no-1-2008
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spelling my.uum.repo.251002018-10-31T01:09:39Z http://repo.uum.edu.my/25100/ Corporate Spin-Offs, Their Price Reactions and Determinants in Malaysia Yoon, Chung-Sin Ariff, Mohamed HG Finance Spin-off as a form of financial restructuring has been examined in the US and the UK but not in other markets.This is a first study outside those markets. The evidence from a sample of 85 spin-off cases in Malaysia reveals that both the parent and the spin-off company stocks gain significant positive abnormal returns: parent firms earn smaller value while the spin-off firm gains substantially, much greater than is documented in other markets.Examining the factors correlated with the size of the spin-off effect, we find the abnormal returns are positively correlated with market capitalization and negatively correlated with age. The larger is the company or the newer is the company the greater is the magnitude of the positive abnormal returns. Universiti Utara Malaysia 2007 Article PeerReviewed application/pdf en http://repo.uum.edu.my/25100/1/IJBF%205%201%202007%2083%20112.pdf Yoon, Chung-Sin and Ariff, Mohamed (2007) Corporate Spin-Offs, Their Price Reactions and Determinants in Malaysia. The International Journal of Banking and Finance, 5 (1). pp. 83-112. ISSN 1617-722 http://ijbf.uum.edu.my/index.php/previous-issues/135-the-international-journal-of-banking-and-finance-ijbf-vol-5-no-1-2008
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutionali Repository
url_provider http://repo.uum.edu.my/
language English
topic HG Finance
spellingShingle HG Finance
Yoon, Chung-Sin
Ariff, Mohamed
Corporate Spin-Offs, Their Price Reactions and Determinants in Malaysia
description Spin-off as a form of financial restructuring has been examined in the US and the UK but not in other markets.This is a first study outside those markets. The evidence from a sample of 85 spin-off cases in Malaysia reveals that both the parent and the spin-off company stocks gain significant positive abnormal returns: parent firms earn smaller value while the spin-off firm gains substantially, much greater than is documented in other markets.Examining the factors correlated with the size of the spin-off effect, we find the abnormal returns are positively correlated with market capitalization and negatively correlated with age. The larger is the company or the newer is the company the greater is the magnitude of the positive abnormal returns.
format Article
author Yoon, Chung-Sin
Ariff, Mohamed
author_facet Yoon, Chung-Sin
Ariff, Mohamed
author_sort Yoon, Chung-Sin
title Corporate Spin-Offs, Their Price Reactions and Determinants in Malaysia
title_short Corporate Spin-Offs, Their Price Reactions and Determinants in Malaysia
title_full Corporate Spin-Offs, Their Price Reactions and Determinants in Malaysia
title_fullStr Corporate Spin-Offs, Their Price Reactions and Determinants in Malaysia
title_full_unstemmed Corporate Spin-Offs, Their Price Reactions and Determinants in Malaysia
title_sort corporate spin-offs, their price reactions and determinants in malaysia
publisher Universiti Utara Malaysia
publishDate 2007
url http://repo.uum.edu.my/25100/1/IJBF%205%201%202007%2083%20112.pdf
http://repo.uum.edu.my/25100/
http://ijbf.uum.edu.my/index.php/previous-issues/135-the-international-journal-of-banking-and-finance-ijbf-vol-5-no-1-2008
_version_ 1644284226687729664
score 13.211869

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