Date of Award
1993
Document Type
Dissertation
Degree Name
Doctor of Philosophy (PhD)
Department
Finance (Business Administration)
First Advisor
George M. Frankfurter
Abstract
The positive stock price reaction associated with the announcement of a corporate spinoff is well-documented but not yet explained. This work offers a new hypothesis: investor sentiment may affect the market response to the announcement of a spinoff. The results of an investigation using market-oriented proxies for investor sentiment support this hypothesis. Results of an analysis using non-market proxies for investor sentiment are not consistent with the above hypothesis. An analysis of the long-term effects on shareholder wealth of spinoffs is also conducted. It is found that pre and post-spinoff performance cannot be considered (statistically) significantly different.
Recommended Citation
Thibodeaux, Verne Lawrence, "Corporate Spinoffs: An Investigation of Short and Long-Term Shareholder Wealth Effects." (1993). LSU Historical Dissertations and Theses. 5600.
https://repository.lsu.edu/gradschool_disstheses/5600
Pages
147
DOI
10.31390/gradschool_disstheses.5600