The effect of voluntary sell-off announcements on shareholder wealth

Article Abstract:

Sell-off activities occur when corporations sell part of their assets, such as a segment or a division, while continuing to exist in essentially the same form. The effect of voluntary sell-offs on stock returns is examined, with it shown from a sample of over 1,000 sell-off events that both sellers and buyers earn significant positive excess returns from such transactions, with the excess returns earned by buyers smaller than those earned by sellers. Evidence exists that a period of significant negative returns for the sellers precedes sell-off announcements, suggesting that sellers generally performed poorly before their sell-off activities.

Research, Models, Economic aspects, Finance, Stocks, Stockholders, Business planning, Corporations, Corporate finance

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The Effect of Voluntary Spin-Off Announcements on Shareholder Wealth

Article Abstract:

Voluntary spin-off announcements are analyzed to determine their effect on shareholder wealth from a sample of fifty-five spin-offs. The spin-off announcements precede a period of abnormally positive returns. Larger spin-offs have a significantly stronger effect on shareholder wealth than small spin-offs.

Valuation, By-products

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Does shareholder composition matter? Evidence from the market reaction to corporate earnings announcements

Article Abstract:

The impact of institutional investor composition upon stock prices during corporate earnings disclosure is discussed.

Behavior, Influence, Institutional investments, Business communication

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