{"title":"CEO特征与企业分拆的价值创造","authors":"Soohyung Kim, Yeosong Yoon","doi":"10.1002/jcaf.22620","DOIUrl":null,"url":null,"abstract":"<p>An important corporate spin-off procedure is forming the spun-off unit's management team by a parent firm, especially the selection of the spun-off unit CEO. Using 207 completed spin-offs with announcement and execution dates between 1994 and 2018, we investigate whether the financial expertise of spun-off unit CEOs is an essential determinant of post-spin-off performance other than spun-off unit CEOs’ other observable characteristics, including their general managerial skills. We find that the abnormal announcement returns for appointing financial expert CEOs at spun-off units are between 2.83 and 3.14 percentage points larger than those generated for appointing non-financial expert CEOs. Furthermore, spun-off unit CEOs with financial expertise significantly improve spin-off firms’ access to external capital resources and subsequent operating performance. Overall, we conclude that spun-off unit CEOs’ financial expertise is a critical determinant of the value creation of spin-off procedures. Our paper contributes to a growing literature on CEOs, their characteristics, and their impact on firm performance.</p>","PeriodicalId":44561,"journal":{"name":"Journal of Corporate Accounting and Finance","volume":null,"pages":null},"PeriodicalIF":0.9000,"publicationDate":"2023-02-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":"{\"title\":\"CEO's characteristics and value creation from corporate spin-offs\",\"authors\":\"Soohyung Kim, Yeosong Yoon\",\"doi\":\"10.1002/jcaf.22620\",\"DOIUrl\":null,\"url\":null,\"abstract\":\"<p>An important corporate spin-off procedure is forming the spun-off unit's management team by a parent firm, especially the selection of the spun-off unit CEO. Using 207 completed spin-offs with announcement and execution dates between 1994 and 2018, we investigate whether the financial expertise of spun-off unit CEOs is an essential determinant of post-spin-off performance other than spun-off unit CEOs’ other observable characteristics, including their general managerial skills. We find that the abnormal announcement returns for appointing financial expert CEOs at spun-off units are between 2.83 and 3.14 percentage points larger than those generated for appointing non-financial expert CEOs. Furthermore, spun-off unit CEOs with financial expertise significantly improve spin-off firms’ access to external capital resources and subsequent operating performance. Overall, we conclude that spun-off unit CEOs’ financial expertise is a critical determinant of the value creation of spin-off procedures. Our paper contributes to a growing literature on CEOs, their characteristics, and their impact on firm performance.</p>\",\"PeriodicalId\":44561,\"journal\":{\"name\":\"Journal of Corporate Accounting and Finance\",\"volume\":null,\"pages\":null},\"PeriodicalIF\":0.9000,\"publicationDate\":\"2023-02-13\",\"publicationTypes\":\"Journal Article\",\"fieldsOfStudy\":null,\"isOpenAccess\":false,\"openAccessPdf\":\"\",\"citationCount\":\"0\",\"resultStr\":null,\"platform\":\"Semanticscholar\",\"paperid\":null,\"PeriodicalName\":\"Journal of Corporate Accounting and Finance\",\"FirstCategoryId\":\"1085\",\"ListUrlMain\":\"https://onlinelibrary.wiley.com/doi/10.1002/jcaf.22620\",\"RegionNum\":0,\"RegionCategory\":null,\"ArticlePicture\":[],\"TitleCN\":null,\"AbstractTextCN\":null,\"PMCID\":null,\"EPubDate\":\"\",\"PubModel\":\"\",\"JCR\":\"Q3\",\"JCRName\":\"BUSINESS, FINANCE\",\"Score\":null,\"Total\":0}","platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Corporate Accounting and Finance","FirstCategoryId":"1085","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1002/jcaf.22620","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
CEO's characteristics and value creation from corporate spin-offs
An important corporate spin-off procedure is forming the spun-off unit's management team by a parent firm, especially the selection of the spun-off unit CEO. Using 207 completed spin-offs with announcement and execution dates between 1994 and 2018, we investigate whether the financial expertise of spun-off unit CEOs is an essential determinant of post-spin-off performance other than spun-off unit CEOs’ other observable characteristics, including their general managerial skills. We find that the abnormal announcement returns for appointing financial expert CEOs at spun-off units are between 2.83 and 3.14 percentage points larger than those generated for appointing non-financial expert CEOs. Furthermore, spun-off unit CEOs with financial expertise significantly improve spin-off firms’ access to external capital resources and subsequent operating performance. Overall, we conclude that spun-off unit CEOs’ financial expertise is a critical determinant of the value creation of spin-off procedures. Our paper contributes to a growing literature on CEOs, their characteristics, and their impact on firm performance.