Spinoffs and wealth transfers: The Marriott case

• 成果类型: Article
• 署名作者: Parrino, R
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/S0304-405X(96)00885-9
• 发表日期: 1997
• 页码: 241-274
• 关键词: spinoff; Restructuring; AGENCY COSTS; financial policy

摘要

This paper examines changes in bondholder and shareholder wealth resulting from the 1993 Marriott spinoff. It documents a wealth transfer from bondholders to shareholders and a decline in the total value of the firm following the spinoff announcement. Subsequent modifications to the spinoff plan reduced the bondholders' loss, but the value of Marriott's notes and debentures remained $194.6 million below their pre-announcement level on the distribution date. Industry-adjusted shareholder gains during the same period were only $80.6 million. Transaction costs and inefficiencies resulting from the spinoff explain much of the decline in the total value of the firm.