<abstract xmlns="http://www.w3.org/1999/xhtml">
<p>The spin-off has become a common mode of restructuring in the corporate world for the last few decades and has thus attracted the interest of researchers to investigate how this form of divestiture creates value for shareholders. While there is an agreement among researchers about the wealth creation of spin-offs around the announcement of the event, the sources of this wealth generation remain controversial. Moreover, the long-run stock performance of the spin-offs invites debates, as there are varied shreds of evidence in this regard. The present study endeavours to provide an overview of the existing literature by systematically reviewing 89 theoretical and empirical works published between 1976 and 2021 on short-term and long-term wealth effects separately to provide state-of-the-art research on the topic concerned. Based on the findings of existing literature, certain suggestions for future research have been made.</p>
</abstract>

The spin-off has become a common mode of restructuring in the corporate world for the last few decades and has thus attracted the interest of researchers to investigate how this form of divestiture creates value for shareholders. While there is an agreement among researchers about the wealth creation of spin-offs around the announcement of the event, the sources of this wealth generation remain controversial. Moreover, the long-run stock performance of the spin-offs invites debates, as there are varied shreds of evidence in this regard. The present study endeavours to provide an overview of the existing literature by systematically reviewing 89 theoretical and empirical works published between 1976 and 2021 on short-term and long-term wealth effects separately to provide state-of-the-art research on the topic concerned. Based on the findings of existing literature, certain suggestions for future research have been made.

Corporate Spin-Offs and Shareholders’ Wealth: A Systematic Review and Future Research Agenda

Acta Universitatis Sapientiae, Economics and Business

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

The spin-off has become a common mode of restructuring in the corporate world for the last few decades and has thus attracted the interest of researchers to...

Corporate Spin-Offs and Shareholders’ Wealth: A Systematic Review and Future Research Agenda

Published Online: Oct 19, 2023

Page range: 42 - 63

DOI: https://doi.org/10.2478/auseb-2023-0003

Keywords
spin-off, corporate divestiture, stock prices, shareholder wealth, systematic review, demerger

© 2023 Saima Nazir et al., published by Sciendo

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

Corporate Spin-Offs and Shareholders’ Wealth: A Systematic Review and Future Research Agenda

Published Online: Oct 19, 2023

Page range: 42 - 63

DOI: https://doi.org/10.2478/auseb-2023-0003

Keywordsspin-off, corporate divestiture, stock prices, shareholder wealth, systematic review, demerger

© 2023 Saima Nazir et al., published by Sciendo

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

Keywords
spin-off, corporate divestiture, stock prices, shareholder wealth, systematic review, demerger