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| The Wealth Effects of Real Estate
Spin-Offs Author: Jay N. Ball, Ronald C. Rutherford, and Ron J. Shaw Start Page: 597 Abstract: This study examines
the wealth effects surrounding the separation of real estate operations via spin-off.
Parent firms of spin-offs in this sample experienced a significant abnormal two-day return
of 3.195% for days - 1 and 0 of the announcement data in the Wall Street Journal. Tracking
the performance of the spun off firms and the parent firms that survived for twenty-four
months after the spin-off showed that neither the portfolio of subsidiaries nor the
portfolio of parent firms earned returns significantly different from the market
portfolio. |
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