Spin-offs in Australia

Robert Durand, O. Richards, David Woodliff

Research output: Contribution to journalArticlepeer-review


Wealth effects of the spin-off method ofcorporate divestiture arc investigated using asample of Australian firms undergoing suchrestructuring in the 1990s. The results showunequivocally that firms undertaking a spin-offto restructure assets create value forshareholders. Excess returns in the three-daywindowaround theannouncement dateaveraged6.9/'k. comparable to recent US and Europeanresults. Measures representing informationasymmetry. focus enhancement. flexibility ofoperations. economies of scale. and growthopportunities were found to be associated withthe excess returns. although not all in theexpected direction.
Original languageEnglish
Pages (from-to)90-101
JournalAccounting Research Journal
Issue number2
Publication statusPublished - 2003


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