<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The paper took 12 groups of parent companies and subsidiaries as the samples, in which the property service companies, spun from the real estate companies, have successfully on the capital market. The research showed that the average abnormal return (AAR) of real estate companies’ stocks was positive on the first announcement date of possible spin-off listing, while the cumulative average abnormal return (CAAR) remained positive for 21 days during the (–11, 9) days around the first announcement of possible spin-off and listing. Further, the changes in operating performance of real estate companies and property service companies were analysed after the successful spin-off for 3 consecutive years, compared with the year before the spin-off and listing. The results showed that after the spin-off and listing, real estate companies and property service companies have greatly improved their performance. Therefore, the fact that real estate companies spun off property service companies created positive values for shareholders.</p>
</abstract>

The paper took 12 groups of parent companies and subsidiaries as the samples, in which the property service companies, spun from the real estate companies, have successfully on the capital market. The research showed that the average abnormal return (AAR) of real estate companies’ stocks was positive on the first announcement date of possible spin-off listing, while the cumulative average abnormal return (CAAR) remained positive for 21 days during the (–11, 9) days around the first announcement of possible spin-off and listing. Further, the changes in operating performance of real estate companies and property service companies were analysed after the successful spin-off for 3 consecutive years, compared with the year before the spin-off and listing. The results showed that after the spin-off and listing, real estate companies and property service companies have greatly improved their performance. Therefore, the fact that real estate companies spun off property service companies created positive values for shareholders.

Value Creation of Real Estate Company Spin-off Property Service Company Listing

Applied Mathematics and Nonlinear Sciences

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"Value Creation of Real Estate Company Spin-off Property Service Company Listing"}

The paper took 12 groups of parent companies and subsidiaries as the samples, in which the property service companies, spun from the real estate companies,...

Value Creation of Real Estate Company Spin-off Property Service Company Listing

Published Online: May 26, 2021

Page range: 1993 - 2008

Received: Mar 10, 2021

Accepted: Mar 25, 2021

DOI: https://doi.org/10.2478/amns.2021.2.00019

Keywords
real estate companies, property service companies, spin-off and listing, value creation

© 2023 Zhang Yang et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Fig. 1

Value Creation of Real Estate Company Spin-off Property Service Company Listing

Published Online: May 26, 2021

Page range: 1993 - 2008

Received: Mar 10, 2021

Accepted: Mar 25, 2021

DOI: https://doi.org/10.2478/amns.2021.2.00019

Keywordsreal estate companies, property service companies, spin-off and listing, value creation

© 2023 Zhang Yang et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Fig. 1

Keywords
real estate companies, property service companies, spin-off and listing, value creation