Corporate Rebuilding Through Spin-Off: A Case Study

Authors

  • Samrat Banerjee Assistant Professor St. Xavier’s University Kolkata
  • CMA Debdas Rakshit Professor University of Burdwan Burdwan

DOI:

https://doi.org/10.33516/maj.v58i8.94-98p

Abstract

As spin-off has emerged as an important mode of corporate rebuilding, it is necessary to evaluate the impact of spin-off on long-term sustainability and share price movement of demerged companies. In this context, we have considered the case of CG Power & Industrial Solutions Ltd. Event history methodology has been employed to evaluate the effect of spin-off on stock prices. An analysis based on raw ESG scores has been made to evaluate the immediate and sustainable effect of spin-off considering a time window of 1 year and 2 years pre and post spin-off. Findings reveal that though spin-off did not have a considerable impact on abnormal returns, it was executed specifically to increase the ESG scores of CG Power & Industrial Solutions Ltd.

Downloads

Download data is not yet available.

Downloads

Published

2023-08-30

How to Cite

Banerjee, S., & Rakshit, C. D. (2023). Corporate Rebuilding Through Spin-Off: A Case Study. The Management Accountant Journal, 58(8), 94–98. https://doi.org/10.33516/maj.v58i8.94-98p

Issue

Volume 58, Issue 8, August 2023

Section

CORPORATE RESTRUCTURING
Crossref
Scopus
Google Scholar
Europe PMC

References

Rakshit. D and Banerjee. S (2022), TheImpactOfCorporateSpinoffson Share PriceMovement Empirical EvidenceFromIndia, The Management Accountant - October 2022, Vol 57 (10), Pp-83-87. ISSN No. 0972-3528

Sarkar. S (2022), Performance Evaluation of ESG Funds in India: A Study, The Management Accountant –March 2022, Vol 57 (3), Pp-40-47. ISSN No. 0972-3528

Rakshit. D and Paul. A (2022), Redefining the pathway towards sustainable growth: The ESG Way, The Management Accountant –March 2022, Vol 57 (3), Pp-31-35. ISSN No. 0972-3528

Rakshit. D and Banerjee. S (2023), DoesSpinoffaffect Corporate Financial Performance, The Management Accountant –March 2023, Vol 58 (3), Pp-89-92. ISSN No. 0972-3528