Equity Carve-out 宣告對母公司及其上下游廠商之財富影響
The Wealth Effects of Equity Carve-out Announcements on Parent Firms’Suppliers and Corporate Customers
Date Issued
2006
Date
2006
Author(s)
Wu, Ping-Jung
DOI
en-US
Abstract
Empirical studies of how equity carve-out announcements affect the parent firms’ suppliers and corporate customers have been scarce. The main contribution of this research is to discuss not only the wealth effect of equity carve-out parent firms but also the wealth effect of their upstream and downstream firms in the product markets.
In this paper, we make two hypotheses (or two effects) to examine the relationship among the equity carve-out parent firms with their suppliers and corporate customers. One is the “Improved Efficiency Hypothesis” and the other is the “Financing Strategy Hypothesis”.
Our results support our hypotheses. As for the parent firms’ main customers, the test results under both two effects are all insignificant. This fact is consistent with zero effect under the improved efficiency hypothesis.
Furthermore, regarding the parent firms’ suppliers, although the explanatory variables under the improved efficiency hypothesis are all insignificant, these evidences still coincide with part of our predictions - suppliers would not be directly affected if the only source of gains to equity carve-out parent firms is improved productive efficiency. Conversely, under hypothesis two, both main suppliers and dependent suppliers are all significantly positive. These positive results may support the following statement—that the parent firm wants to undertake an R-S investment with its suppliers by lowering its debt level.
Subjects
Equity Carve-out
宣告效果
事件研究法
上下游廠商
財富影響
Event Study
Wealth Effect,Equity Carve-out
Supplier
Corporate Customer
Type
thesis