The thesis explores the magnitude and determinants of spinoff value effects usingrobust methodologies and different theoretical perspectives. From a sample of 170European spinoffs in the period 1987-2005, I find that spinoff announcement returnsare significantly positive while the long-run...

This paper argues that investor sentiment affects the market reaction to spinoff announcements. It further proposes a catering theory for corporate spinoff decisions. This theory points out that a firm's manager may observe a prevailing strong investor demand for corporate focus or glamour...