Do “captive” spin-offs create value? Evidence from Korea

IF 6.9 2区经济学 Q1 BUSINESS, FINANCE

Finance Research Letters Pub Date : 2025-07-05 DOI:10.1016/j.frl.2025.107826

Hyung Cheol Kang , Sangwon Lee

引用次数: 0

Abstract

“Captive” spin-offs, in which the spun-off entity becomes a wholly-owned subsidiary of the parent, account for a vast majority of spin-off activities in Korea. Many practitioners have claimed that such spin-offs can be used by the firm’s controlling owner as a means of expropriating minority shareholders. We empirically show that, on average, a captive spin-off is followed by substantial decreases in both the stock price and operating performance of the parent firm, which is even more so the case when there is a significant conflict of interest between the controlling owner and minority shareholders.

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“专属”的分拆能创造价值吗？来自朝鲜的证据

“专属”分拆，即分拆实体成为母公司的全资子公司，占韩国分拆活动的绝大部分。许多从业人员声称，这种分拆可以被公司的控股所有者用作征用小股东的手段。我们的经验表明，平均而言，独立分拆之后，母公司的股价和经营业绩都会大幅下降，当控股所有者和小股东之间存在重大利益冲突时，情况更是如此。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Finance Research Letters BUSINESS, FINANCE-

CiteScore

11.10

自引率

14.40%

发文量

863

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