Gertner, Robert; Powers, Eric; Scharfstein, David - In: Journal of Finance 57 (2002) 6, pp. 2479-2506
We examine the investment behavior of firms before and after being spun off from their parent companies. Their investment after the spin-off is significantly more sensitive to measures of investment opportunities (e.g., industry Tobin's "Q"or industry investment) than it is before the spin-off....