Do spin-offs expropriate wealth from bondholders?

Article Abstract:

The wealth transfer hypothesis is examined as an explanation of stockholder gains and bondholder losses on a corporate spin-off announcement. Losses to bondholders are found to be a function of the level of parent firm financial risk and the loss in spun-off subsidiary collateral.

Divestiture Analysis, Economic aspects, Stockholders, Comparative analysis, Corporate divestiture, Divestiture, Divestment, Bondholders

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An examination of long-term abnormal stock returns and operating performance following R&D increases

Article Abstract:

A study examining 8313 firms between the years 1951 and 2001 and learning the causes for suddenly increasing expenditures for research and development, which led to increase in operating performance and stock returns of the companies, is presented.

Research and Development in the Physical, Engineering, and Life Sciences, Forecasts, trends, outlooks, Financial management, Scientific Research and Development Services, Commercial physical research, Research & Development-Industry, Science, Research & Development, Finance, Stocks, Forecasts and trends, Research and development, Industrial research, Market trend/market analysis, Company financing, Capital expenditures

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The wealth effects of repurchases on bondholders

Article Abstract:

Repurchase program announcements have a positive impact on stock returns and a predominantly negative impact on bond ratings.

Science & research, Capital Management-Stock Repurchase, Research, Evaluation, Stock redemption, Bond repurchasing, Repurchase agreements, Corporate debt

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