Template-Type: ReDIF-Article 1.0
Author-Name: Nadisah Zakaria
Author-Workplace-Name: Salford Business School, The University of Salford, Manchester, M54WT United Kingdom
Author-Email: nadisahzakaria@yahoo.com
Author-Name: Glen Christopher Arnold 
Author-Workplace-Name: Salford Business School, The University of Salford, Manchester, M54WT United Kingdom
Title: Do Malaysian Focus-Increasing Spin-Off Firms Underperform?
Abstract: This paper investigates whether increased corporate focus surrounding a spin-off is associated with abnormal short-run and long-run share return performance from January 1980 to April 2011. By looking at the share return performance of both focus-increasing and non-focus-increasing parent firms, we find evidence against the claims of the focus-increasing hypothesis. Our results show that focus-increasing parent firms significantly underperformed when compared to their counterparts in the non-focus-increasing sub-sample during the few days surrounding the announcement date, even after adjusting for firm size. We also observe that spin-offs by the focus-increasing entities fail to demonstrate abnormal performance in the long-run period of three years. 
Classification-JEL:
Keywords: spin-offs, share returns performance, market efficiency, focus 
Journal: Asian Academy of Management Journal of Accounting and Finance
Pages: 91-123
Volume: 8
Issue: 1
Year: 2012
File-URL: http://web.usm.my/journal/aamjaf/vol 8-1-2012/8-1-5.pdf
File-Format: Application/pdf
Handle: RePEc:usm:journl:aamjaf00801_91-123