University, Diss., 2006--Bonn.

Thesis (Ph. D.)--Halle, 1887. / "Die arbeit, deren anfang hier vorliegt, wird demnächst erscheinen als heft XXIII. der 'Halleschen abhandlungen zur neueren geschichte'. Hrsg. von G. Droysen. Verlag von M. Niemeyer in Halle a.S."

Allowing the interaction of two dynamic forces that vie for dominance to be a form, a new character emerges. The character of the new form is present in the qualities of its making. / Master of Architecture

<p><strong>Syfte: </strong>Syftet med denna uppsats är att undersöka hur moderbolagets aktiekurs reagerar, därmed påvisa eventuell onormal avkastning när ett moderbolag beslutar sig för och sedan avyttrar en del av ett dotterbolag till börsen (Equity Carve‐Out). Delsyftet är att undersöka sambandet mellan onormalavkastning i storleken på avyttrade andelar samt beskriva de motiv som anges och analysera detta mot storleken på avknoppad andel.</p><p><strong>Metod: </strong>Undersökningen är en eventstudie med en kvantitativ ansats. Empirin består av sekundärdata i form av börskurser och index.</p><p><strong>Teori: </strong>Eventstudien bygger på hypotesen om effektiva marknader, teorin om asymmetrisk information, agent teori samt teorin om avknoppningsfördelar.</p><p><strong>Empiri: </strong>Eventstudien bygger på 25 Equity Carve‐Outs genomförda mellan åren 1991‐2007 och behandlar aktieutvecklingen dels vid beslut och dels vid genomförandet av en avknoppning, detta relateras sedan till tidigare forskning.</p><p><strong>Resultat </strong></p><ul><li>ECO mellan åren 1991 och 2007 har generellt medfört svagt positiva priseffekter vid beslutet om avknoppning och positiva priseffekter vid avyttringen. </li><li>En ECO motsäger sig inte den effektiva marknadshypotesen i dess halvstarka form. </li><li>Det finns inget samband i marknadsreaktionen beroende på storleken i avyttrad andel. </li><li>Angivna motiv skiljer sig generellt inte beroende på hur stor andel som avyttras. </li></ul> / <p><strong>Purpose: </strong>The aim of this bachelor thesis paper is to investigate parent company stock market reactions to decision and sale of a subsidiary through an Equity Carve‐Out. A secondary purpose is to investigate the correlation between the abnormal returns and the amount of stocks sold in a subsidiary and describe the motives associated whit the sale, and relate those motives to the amount of stocks sold in the subsidiary.</p><p><strong>Methodology: </strong>An event study with a quantitative approach based on empirics consisting of abnormal returns, calculated based on the adjusted market model.</p><p><strong>Theoretical perspectives: </strong>This study is based on the efficient market hypothesis, asymmetric information hypothesis, agency theory and divestiture gains hypothesis.</p><p><strong>Empirical foundation: </strong>The study is based on 25 Equity Carve‐Outs during the period 1991‐2007 on the Swedish stock exchange.</p><p><strong>Conclusion </strong></p><ul type="disc"><li>Equity Carve‐Outs between 1991 and 2007 have generated slightly positive price effects at the time of decision and increasingly positive price effects at the time of the sale. </li><li>An Equity Carve‐Out does not contradict the efficient market theory. </li><li>There is no immediate correlation between the market reaction and the size in the subsidiary retained. </li><li>Parent company motives do not differ depending on the size in the subsidiary retained. </li></ul><p> </p>

Syfte: Syftet med denna uppsats är att undersöka hur moderbolagets aktiekurs reagerar, därmed påvisa eventuell onormal avkastning när ett moderbolag beslutar sig för och sedan avyttrar en del av ett dotterbolag till börsen (Equity Carve‐Out). Delsyftet är att undersöka sambandet mellan onormalavkastning i storleken på avyttrade andelar samt beskriva de motiv som anges och analysera detta mot storleken på avknoppad andel. Metod: Undersökningen är en eventstudie med en kvantitativ ansats. Empirin består av sekundärdata i form av börskurser och index. Teori: Eventstudien bygger på hypotesen om effektiva marknader, teorin om asymmetrisk information, agent teori samt teorin om avknoppningsfördelar. Empiri: Eventstudien bygger på 25 Equity Carve‐Outs genomförda mellan åren 1991‐2007 och behandlar aktieutvecklingen dels vid beslut och dels vid genomförandet av en avknoppning, detta relateras sedan till tidigare forskning. Resultat ECO mellan åren 1991 och 2007 har generellt medfört svagt positiva priseffekter vid beslutet om avknoppning och positiva priseffekter vid avyttringen. En ECO motsäger sig inte den effektiva marknadshypotesen i dess halvstarka form. Det finns inget samband i marknadsreaktionen beroende på storleken i avyttrad andel. Angivna motiv skiljer sig generellt inte beroende på hur stor andel som avyttras. / Purpose: The aim of this bachelor thesis paper is to investigate parent company stock market reactions to decision and sale of a subsidiary through an Equity Carve‐Out. A secondary purpose is to investigate the correlation between the abnormal returns and the amount of stocks sold in a subsidiary and describe the motives associated whit the sale, and relate those motives to the amount of stocks sold in the subsidiary. Methodology: An event study with a quantitative approach based on empirics consisting of abnormal returns, calculated based on the adjusted market model. Theoretical perspectives: This study is based on the efficient market hypothesis, asymmetric information hypothesis, agency theory and divestiture gains hypothesis. Empirical foundation: The study is based on 25 Equity Carve‐Outs during the period 1991‐2007 on the Swedish stock exchange. Conclusion <ul type="disc">Equity Carve‐Outs between 1991 and 2007 have generated slightly positive price effects at the time of decision and increasingly positive price effects at the time of the sale. An Equity Carve‐Out does not contradict the efficient market theory. There is no immediate correlation between the market reaction and the size in the subsidiary retained. Parent company motives do not differ depending on the size in the subsidiary retained.

Using a sample of 57 master limited partnerships (MLPs) formed from corporate assets between 1982 and 2011, I examine the share price effects on parent corporations from forming MLPs. Specifically, I compare announcement period returns during the first and second waves of MLP formations—1982-1987 and 1988-2011, respectively—to assess the effect of structural changes in the MLP agency and operating environments on the market response to MLP formation. I document significantly higher 3-day and 5-day announcement period returns for second wave MLP formations, suggesting that changes to the MLP agency and operating environments have enhanced the value impact of MLP formation. I also find evidence that parent corporations benefit from the increased opportunity to exploit conflicts of interest with the MLP, which arise from these changes. Finally, I examine the prediction of prior literature that MLP formation improves the parent company’s information environment, finding support for this assertion in the form of reduced idiosyncratic return volatility.

A central question in corporate finance has been about the optimal balance between both debt and equity financing when trying to determine the optimal capital structure of a new or existing firm. In this thesis, I investigate how the capital structure of the parent and carve-out company evolve following the carve-out itself. This investigation is a direct extension of Dittmar's (2004) work and contributes to the literature on the choice of a carve-out or spin-off. This leverage choice may be influenced by the parent corporation's need for cash, either to finance growth opportunities, to distribute cash to shareholders, or to repay debt (Michaely & Shaw, 1995). Using a sample of 102 subsidiaries that have completed a carve-out between the years of 1985 and 2001 , I find that carve-outs do not have higher debt levels than spinoffs as reported in Dittmar's (2004) study. I also find that the parent firms ' leverage does not decrease as predicted. Leverage actually increases during the three years following the carve-out. I have also found that cash constraints, collateral value, and the parent firms ' pre-debt level are positively related to leverage choice while the parent firms' precarve- out cash constraint is negatively correlated. However, there is no significance between leverage and firm size, growth opportunities, or profitability.

Based on experimentation with the steam bending of wood to curved shapes, this thesis describes my involvement with three basic aspects of the process. First is the procurement, assimilation, and construction of the equipment and apparatus necessary for the steam bending of wood. Secondly, the determination of certain qualities of particular woods in reference to steam bending is made. This includes: woods easily bent; woods not easily bent; the time required to plasticize stock; and the time required to set curves. Also noted are some of the physical limitations involved in bending stock with steam in the craftsman's studio. Thirdly, steam bent wood is related to furniture design in terms of the craftsman's approach to the design and to the problems inherent in this process.

Chapter 1 of the dissertation investigates the firms' restructuring choice between minority carve-outs and tracking stocks using samples during 1990-2001. The extra compensation from the restructured units, the liquidity conditions, and the preservation of synergy are the significant factors determining a firm's restructuring decision. Additional compensation seems to be a major driving force behind restructuring via tracking stock. One year after the restructuring, the executive compensation of the tracking stock group increases by 241% compared to 32% for the carve-out sample. In spite of the significant increase in the compensation, the three-year buy-and-hold return for tracking stock parents is more negative than that of the carve-out parents. Thus, if the extra compensation was designed to align the interests of managers and shareholders, the goal did not materialize. The primary motive behind restructuring through carve-outs is to control the liquidity problem. Although the operating performance of the parents of either group does not improve three years after the restructuring, the long-term stock performance of carve-out parents improves when a restructured unit is less related to the parent. Chapter 2 of the dissertation compares the degree of overreaction between value stocks and growth stocks using the implied volatility from option prices. Applying Stein's (1989) mean reversion model and Heynen, Kemna, and Vorst's (1994) GARCH and EGARCH methods, I compare the theoretical and empirical measures of reaction of longterm options in respect to short-term options for the growth and the value portfolios, which are separately classified by price-to-book and price-to-earning ratios. The evidence suggests that growth portfolios largely overreact to a greater degree than the value portfolios assuming mean reversion, GARCH, and EGARCH models. The findings potentially explain why value stocks outperform growth stocks in the long run, lending support to overreaction as an explanation for the value effect.

In the absence of taxes and transactions costs, there can be no benefit to corporate reorganization from a financial standpoint, but ‘real world’ limitations and frictions do provide additional value that is gained through divestitures in terms of focus and financial flexibility. Herein, the corporate divestiture decision is analyzed to determine the motivation for a parent company either to cleave its offspring directly to the external capital market in an equity carve-out or to distribute the shares to the existing shareholders in a tax-free spin-off. Cash flow performance, asymmetric information, relative size of the divestiture, and relatedness of the parent’s and subsidiary’s operations are all found to contribute significantly to the divestiture decision. In Canada, an alternate form of security, known as the income trust unit, has become popular for corporate reorganizations, either through an initial public offering or as a conversion of shares. The flow-through structure of income trusts currently allows avoidance of corporate taxation to offer higher pre-tax returns to retail investors, in a market setting where yield is increasingly equated with value. To determine placement of these securities in the market, the risk of the income trust organizational form is analyzed and compared to the standard corporate form. Further, a number of publicly known characteristics of the income trusts can predict the relative risk of this type of investment. In recent ‘hot markets’ for these securities, proof is uncovered that unsuitable firms have been migrating to this sector, but valuation of the investments in this sector has remained fair and full. Although pending legislation will discontinue the tax-exempt status of income trusts in 2011, during their tenure these securities have improved the Canadian market. Based on the data analysis herein, all types of divestitures studied have been predicted to provide commensurate value with respect to risk depending on the nature of the subsidiary. / Thesis (Ph.D, Management) -- Queen's University, 2007-08-15 11:20:20.465