Spin-off på Stockholmsbörsen : motiv och marknadens förväntningar
Abstract (Summary)This thesis is a study regarding the spin-off phenomena, whereby a division or subsidiary becomes independent and listed on the stock market. The new shares are distributed free of charge to the shareholders of the parent company. The purpose of this investigation is to examine the motives that Swedish companies mentioned for a spin-off and, by using the market model, calculate the companies' abnormal returns on the days around the announcement of a planned spin-off. Furthermore, an observation of the market reaction at the time of the shareholders' meeting, when the company made the final decision, was carried out. To see if the market's expectations and the companies' motives are related, two regression analyses were carried out. The results of this research show that the companies, on the whole, mention the same motives. This is in accordance with the findings of earlier studies. The announcement of a spin-off showed a cumulative abnormal return of 0,59 % and 2,59 % when event windows of 11 and 2 days respectively were used. This also agreed with earlier observations. No direct relations between motives and abnormal return were found through the regression analysis. Weak relations indicated that less frequently mentioned motives give higher abnormal return compared to more common motives and that few motives give higher abnormal return than many motives. Companies that mentioned focus on core business as a motive had lower abnormal returns than those that didn't. This conclusion contradicts earlier studies. The market reaction to the spin-off decision at the shareholders' meeting was negative. Interviews with analysts suggested that the negative reaction could depend on that the right to shares of the subsidiary often is separated from the parent share soon after the shareholders' meeting.
Source Type:Master's Thesis
Date of Publication:10/16/2007