D'Mello, Ranjan; Krishnaswami, Sudha; Larkin, Patrick J. - In: Journal of Banking & Finance 32 (2008) 7, pp. 1209-1220
We study the factors that influence the cash allocation decision around a spin-off, using variables suggested by the trade-off theory, and controlling for the possible endogeneity of leverage and cash ratios. Spin-offs provide an opportunity to examine the determinants of cash allocation at the...