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Agency problems in tracking stock and minority carve-out decisions: Explaining the discrepancy in short- and long-term performances

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  • Wei He
  • Tarun Mukherjee
  • Peihwang Wei

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  • Wei He & Tarun Mukherjee & Peihwang Wei, 2009. "Agency problems in tracking stock and minority carve-out decisions: Explaining the discrepancy in short- and long-term performances," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 33(1), pages 27-42, January.
    • Handle: RePEc:spr:jecfin:v:33:y:2009:i:1:p:27-42
    DOI: 10.1007/s12197-007-9021-3
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    References listed on IDEAS

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    1. Jensen, Michael C, 1986. "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers," American Economic Review, American Economic Association, vol. 76(2), pages 323-329, May.
    2. Dennis E. Logue & James K. Seward & James P. Walsh, 1996. "Rearranging Residual Claims: A Case for Targeted Stock," Financial Management, Financial Management Association, vol. 25(1), Spring.
    3. John Elder & Peter Westra, 2000. "The reaction of security prices to tracking stock announcements," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 24(1), pages 36-55, March.
    4. Michael C. Jensen, 2010. "The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems," Journal of Applied Corporate Finance, Morgan Stanley, vol. 22(1), pages 43-58, January.
    5. Matthew T. Billett & Anand M. Vijh, 2004. "The Wealth Effects Of Tracking Stock Restructurings," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 27(4), pages 559-583, December.
    6. Gigler, Frank & Hemmer, Thomas, 2002. "Informational costs and benefits of creating separately identifiable operating segments," Journal of Accounting and Economics, Elsevier, vol. 33(1), pages 69-90, February.
    7. Joel T.Harper & Jeff Madura, 2002. "Sources of Hidden Value and Risk Within Tracking Stock," Financial Management, Financial Management Association, vol. 31(3), Fall.
    8. Matthew J. Clayton & Yiming Qian, 2004. "Wealth Gains from Tracking Stocks: Long-Run Performance and Ex-Date Returns," Financial Management, Financial Management Association, vol. 33(3), Fall.
    9. Billett, Matthew T. & Mauer, David C., 2000. "Diversification and the value of internal capital markets: The case of tracking stock," Journal of Banking & Finance, Elsevier, vol. 24(9), pages 1457-1490, September.
    10. Audra Boone & David Haushalter & Wayne Mikkelson, 2003. "An Investigation of the Gains from Specialized Equity Claims," Financial Management, Financial Management Association, vol. 32(3), Fall.
    11. John Elder & Pankaj K. Jain & Jang‐Chul Kim, 2005. "Do Tracking Stocks Reduce Information Asymmetries? An Analysis Of Liquidity And Adverse Selection," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 28(2), pages 197-213, June.
    12. Jeff Madura & Terry Nixon, 2002. "The long-term performance of parent and units following equity carve-outs," Applied Financial Economics, Taylor & Francis Journals, vol. 12(3), pages 171-181.
    13. Stuart C. Gilson & Paul M. Healy & Christopher F. Noe & Krishna G. Palepu, 2001. "Analyst Specialization and Conglomerate Stock Breakups," Journal of Accounting Research, Wiley Blackwell, vol. 39(3), pages 565-582, December.
    14. repec:bla:jfinan:v:53:y:1998:i:1:p:163-186 is not listed on IDEAS
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    Cited by:

    1. Salim Chahine & Mohamad Zeidan, 2014. "Corporate governance and market performance of parent firms following equity carve-out announcements," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 18(2), pages 471-503, May.

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    More about this item

    Keywords

    Agency problem; Restructuring; Tracking stock; Carve-out; G34; G32;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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