Value creation from equity carve-outs

Heather M. Hulburt, James A. Miles, J. Randall Woolridge

Research output: Contribution to journalArticlepeer-review

52 Scopus citations


Using a large sample of equity carve-out events during the 1980s and 1990s, we find that rivals of carve-out parent firms display negative announcement-period returns. This finding distinguishes the divestiture gains hypothesis from the asymmetric information hypothesis. Additional tests provide further support for the divestiture gains hypothesis. Operating performance improvements for both parents and their carved-out subsidiaries are evident.

Original languageEnglish (US)
Pages (from-to)83-100
Number of pages18
JournalFinancial Management
Issue number1
StatePublished - 2002

All Science Journal Classification (ASJC) codes

  • Accounting
  • Finance
  • Economics and Econometrics


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