Journal article
THE WEALTH EFFECTS OF TRACKING STOCK RESTRUCTURINGS
The Journal of financial research, Vol.27(4), pp.559-583
12/2004
DOI: 10.1111/j.1475-6803.2004.00108.x
Abstract
We provide a comprehensive examination of the post-issue wealth effects of 29 completed tracking stock restructurings. We document that for the parent stock and for the combined firm, tracking stock restructurings lead to insignificant long-term excess returns. However, we find that shareholders of tracking stocks realize significant post-issue wealth losses. Unlike spin-offs and carve-outs, announcements of tracking stock restructurings are preceded by negative one-year excess returns, and unlike the positive post-issue long-term excess returns to spin-off stocks and the insignificant long-term excess returns to carve-out stocks, tracking stocks experience negative long-term excess returns.
Details
- Title: Subtitle
- THE WEALTH EFFECTS OF TRACKING STOCK RESTRUCTURINGS
- Creators
- Matthew T. Billett - University of IowaAnand M. Vijh - University of Iowa
- Resource Type
- Journal article
- Publication Details
- The Journal of financial research, Vol.27(4), pp.559-583
- Publisher
- Blackwell Publishing, Inc
- DOI
- 10.1111/j.1475-6803.2004.00108.x
- ISSN
- 0270-2592
- eISSN
- 1475-6803
- Number of pages
- 25
- Language
- English
- Date published
- 12/2004
- Academic Unit
- Finance
- Record Identifier
- 9984380514502771
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