The Motives and Performance of Equity Crave-Out Companies

分割目的和股權分割公司之績效

10.6656/MR.2016.35.3.ENG.135

林美珍(Mei-Chen Lin)；温于瑩(Yu-Ying Wen)

Equity Crave-Outs ； Corporate Governance ； Abnormal Returns

管理評論

35卷3期（2016 / 07 / 01）

135 - 151

英文

This study analyzes the long-term performance of firms that undertake equity carve-outs and investigates whether subsequent performance is relevant to the purpose of the equity carve-out. We also examine whether corporate governance mechanisms affect the performance of equity carve-out companies from the perspectives of ownership and board structure. We find that equity carve-outs have no effect on the long-term performance of parent companies. Positive abnormal returns associated with equity carve-outs are attributed to companies that carve out to exploit lands and to increase specialization. The main benefits come from the enhancement of efficiency in asset utilization and the reduction in financial risk. Long-term performance from equity carve-outs improves as the ratio of the large shareholders increases. This finding indicates that corporate governance affects the long-term performance of firms that undertake equity carve-outs.

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