We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
THE WEALTH EFFECTS OF TRACKING STOCK RESTRUCTURINGS.
- Authors
Billett, Matthew T.; Vijh, Anand M.
- Abstract
We provide a comprehensive examination of the post-issue wealth effects of 29 completed tracking stock restructurings. We document that for the parent stock and for the combined firm, tracking stock restructurings lead to insignificant long-term excess returns. However, we find that shareholders of tracking stocks realize significant post-issue wealth losses. Unlike spin-offs and carve-outs, announcements of tracking stock restructurings are preceded by negative one-year excess returns, and unlike the positive post-issue long-term excess returns to spin-off stocks and the insignificant long-term excess returns to carve-out stocks, tracking stocks experience negative long-term excess returns.
- Subjects
WEALTH; TRACKING stock; RATE of return; INVESTMENTS; STOCK exchanges
- Publication
Journal of Financial Research, 2004, Vol 27, Issue 4, p559
- ISSN
0270-2592
- Publication type
Article
- DOI
10.1111/j.1475-6803.2004.00108.x