Spin-offs, divestitures, and conglomerate investment

• 成果类型: Article
• 署名作者: Colak, Gonul; Whited, Toni M.
• 署名单位: University of Wisconsin System; University of Wisconsin Madison; Wichita State University
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhl022
• 发表日期: 2007
• 页码: 557
• 关键词: internal capital-markets; DIVERSIFICATION DISCOUNT; firm performance; inefficient investment; CORPORATE ASSETS; estimators; RESOURCES; diversity; strategy; PROGRAMS

摘要

We examine whether spin-offs or divestitures cause improvements in conglomerate investment efficiency. At issue are endogeneity of these restructuring decisions and correct measurement of investment efficiency. Endogeneity is a problem because the factors that induce firms to spin off or divest divisions may also improve investment efficiency; measurement error is a problem because efficiency measures employ Tobin's q as a noisy proxy for investment opportunities. We find important differences between firms that divest or spin off and a control sample. After accounting for these differences and for measurement error in q, we find no evidence of improvements in investment efficiency.