Internal capital markets and investment policy: evidence from corporate spinoffs

• 成果类型: Article
• 署名作者: Ahn, S; Denis, DJ
• 署名单位: Purdue University System; Purdue University; Concordia University - Canada
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/S0304-405X(03)00165-X
• 发表日期: 2004
• 页码: 489-516
• 关键词: internal capital markets; spinoffs; diversification

摘要

We analyze changes in investment policy following 106 spinoffs between 1981 and 1996. Pre-spinoff, the sample firms are valued at a discount and invest less in their high q segments than do their single-segment peers. Post-spinoff, there is a significant increase in measures of investment efficiency and the diversification discount is eliminated. Furthermore, changes in excess value around the spinoff are positively related to changes in measures of investment efficiency. These findings support the view that (i) diversified firms allocate investment funds inefficiently, and (ii) by breaking up the conglomerate, spinoffs create value by improving investment efficiency. (C) 2003 Elsevier B.V. All rights reserved.