The Impact of Corporate Spin-Offs on Share Price Movement Empirical Evidence From India

Authors

  • CMA (Dr.) Debdas Rakshit Professor The University of Burdwan Burdwan
  • Samrat Banerjee Research Scholar University of Burdwan Burdwan

DOI:

https://doi.org/10.33516/maj.v57i10.83-87p

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.

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Published

2022-10-01

How to Cite

Rakshit, C. (Dr.) D., & Banerjee, S. (2022). The Impact of Corporate Spin-Offs on Share Price Movement Empirical Evidence From India. The Management Accountant Journal, 57(10), 83–87. https://doi.org/10.33516/maj.v57i10.83-87p

Issue

Volume 57, Issue 10, October 2022

Section

Stock Market
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