Do Spinoffs Create Value in Hong Kong?
There is a broad consensus in the literature that spinoffs tend to create value for shareholders and exhibit positive long-run excess returns. However, most of the prior studies are confined to the US and the European cases. The spinoff problems in Hong Kong are surprisingly under-studied despite i...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Emerald Group Publishing Limited
2006
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/16678/ http://ir.unimas.my/id/eprint/16678/1/Terence.pdf |
| _version_ | 1848838112793329664 |
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| author | Tai-Leung, Terence Chong Wai-Hong, Daniel Wong Liew, Venus Khim-Sen |
| author_facet | Tai-Leung, Terence Chong Wai-Hong, Daniel Wong Liew, Venus Khim-Sen |
| author_sort | Tai-Leung, Terence Chong |
| building | UNIMAS Institutional Repository |
| collection | Online Access |
| description | There is a broad consensus in the literature that spinoffs tend to create value for shareholders and exhibit positive long-run excess returns. However, most of the prior studies are confined to the US and the European cases. The spinoff problems in Hong Kong
are surprisingly under-studied despite its important role as a global center of capital formation. In this paper, we find that there is a short-run value creation for the Hong Kong spinoffs. However, the financial health of the spinoff companies, measured by various financial ratios, tends to deteriorate in the long-run. In general, Hong Kong spinoffs generate negative returns to investors. |
| first_indexed | 2025-11-15T06:50:23Z |
| format | Article |
| id | unimas-16678 |
| institution | Universiti Malaysia Sarawak |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T06:50:23Z |
| publishDate | 2006 |
| publisher | Emerald Group Publishing Limited |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | unimas-166782021-07-12T16:10:57Z http://ir.unimas.my/id/eprint/16678/ Do Spinoffs Create Value in Hong Kong? Tai-Leung, Terence Chong Wai-Hong, Daniel Wong Liew, Venus Khim-Sen HB Economic Theory There is a broad consensus in the literature that spinoffs tend to create value for shareholders and exhibit positive long-run excess returns. However, most of the prior studies are confined to the US and the European cases. The spinoff problems in Hong Kong are surprisingly under-studied despite its important role as a global center of capital formation. In this paper, we find that there is a short-run value creation for the Hong Kong spinoffs. However, the financial health of the spinoff companies, measured by various financial ratios, tends to deteriorate in the long-run. In general, Hong Kong spinoffs generate negative returns to investors. Emerald Group Publishing Limited 2006 Article PeerReviewed text en http://ir.unimas.my/id/eprint/16678/1/Terence.pdf Tai-Leung, Terence Chong and Wai-Hong, Daniel Wong and Liew, Venus Khim-Sen (2006) Do Spinoffs Create Value in Hong Kong? Journal of Asia Business Studies, 4 (1). pp. 23-32. ISSN 1558-7894 http://www.emeraldinsight.com/doi/abs/10.1108/15587890980000416 doi.org/10.1108/15587890980000416 |
| spellingShingle | HB Economic Theory Tai-Leung, Terence Chong Wai-Hong, Daniel Wong Liew, Venus Khim-Sen Do Spinoffs Create Value in Hong Kong? |
| title | Do Spinoffs Create Value in Hong Kong? |
| title_full | Do Spinoffs Create Value in Hong Kong? |
| title_fullStr | Do Spinoffs Create Value in Hong Kong? |
| title_full_unstemmed | Do Spinoffs Create Value in Hong Kong? |
| title_short | Do Spinoffs Create Value in Hong Kong? |
| title_sort | do spinoffs create value in hong kong? |
| topic | HB Economic Theory |
| url | http://ir.unimas.my/id/eprint/16678/ http://ir.unimas.my/id/eprint/16678/ http://ir.unimas.my/id/eprint/16678/ http://ir.unimas.my/id/eprint/16678/1/Terence.pdf |