Abstract
The present study focuses on the effect of spin-off announcements on the stock returns of 24 sample demerged companies in India for the period from 2009-10 to 2018-19. For this purpose, the market model of event study methodology has been applied. The impact of the spin-off is statistically significant on cumulative average abnormal returns of these sample firms for time windows (-2, +2) and (-10, +10) which are 5.088 per cent and 6.609 per cent , respectively, at a 5 per cent level of significance. This study supports the statement that changes in stock returns are strongly associated with the spin-off announcements.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
