Gleason, Kimberly; Madura, Jeff; Pennathur, Anita K. - In: The Financial Review 41 (2006) 2, pp. 229-246
While existing literature reports a positive market reaction to parent companies conducting carve-outs, we find that the response to carve-outs that are ultimately reacquired is negative or insignificant. Reacquired units perform considerably worse than those that are not reacquired. Thus,...