Överavkastning på Knoppar och Avknoppare

Sammanfattning: Title: Abnormal Return on Spin-offs and its Parent– A study on the performance of the Spin-off and the Parents performance over 2 yers Seminar date: June 4, 2020 Course: FEKH89, Business Administration: Degree Project undergraduate Level, 15 University Credit Points Authors: Wahidullah Barikzay, Malcolm Holm, Andreas Magnusson Advisor: Anamaria Cociorva Keywords: Spin-off, Abnormal Return, BHAR, Efficient Market, M&A Purpose: The purpose of the study is to investigate whether it is possible to obtain abnormally positive returns by buying and retaining shares in spin-offs and its parent company for two years. Methodology: The study has been conducted as a quantitative event study to investigate the abnormal return compared to the index. A regression analysis has been conducted to test the independent variables. Theoretical perspectives: The study has been based on financial theories and previous studies in the field of spin-offs. Empirical foundation: The sample consists of 182 companies in the Swedish, Norwegian, Finnish and Danish markets, in which spin-offs were carried out between 2000 and 2017. Conclusion: The calculation of abnormal returns shows that there is a significant difference between the return on spin-offs and its parent company compared to the respective country's index of comparison. The variables debt to equity ratio and relative size show a significant relationship. Focus shows no statistical relationship. Acquisitions, New Economy and country show a weak statistical relationship.