CREATING VALUE THROUGH SPIN-OFFS: EVIDENCE FROM EUROPE

Abstract

This thesis investigates the long-term wealth effects from a sample of 134 spin-off transactions that were closed between January 2000 and September 2019. We document positive and significant average buy-and-hold abnormal returns for firms that have been spun-off in the 6, 18 and 24-month periods following the spin-off transaction. Furthermore, we find that both industry-focusing and non-industry-focusing spin-offs generate positive buy-and-hold abnormal returns. Our findings appear in line with the notion that spin-off transactions create significant value for firms' equity investors.