A comparison of equity carve-outs and seasoned equity offerings. Share price effects and corporate restructuring


Journal Article

This paper investigates share price reactions of parent firms to announcements of public offerings of stock of wholly-owned subsidiaries. The average abnormal gains associated with 'equity carve-out' announcements contrast with the average abnormal losses documented here and elsewhere upon announcements of public offerings of parent equity. Four features distinguishing equity carve-outs from parent equity offerings are discussed. Evidence is provided on these features as potential explanations for the positive average share price reaction associated with announcements of equity carve-outs. © 1986.

Full Text

Cited Authors

  • Schipper, K; Smith, A

Published Date

  • January 1, 1986

Published In

Volume / Issue

  • 15 / 1-2

Start / End Page

  • 153 - 186

International Standard Serial Number (ISSN)

  • 0304-405X

Digital Object Identifier (DOI)

  • 10.1016/0304-405X(86)90053-X

Citation Source

  • Scopus