While there are economic motives and empirical support for spinoffs, about one in every four planned spinoffs is withdrawn. This study is the first to explain why some spinoffs are withdrawn. We find that the probability that a spinoff is withdrawn is inversely related to the share price...

We find that units are more likely to adopt poisonpills at the time of a spinoff if their parents have anti-takeover provisions in place. In addition, the probability that a spinoff unit adopts a poisonpill is negatively related to outside block ownership, but positively related to the size of...

This paper examines the stock price reaction to cross-border spinoff announcements and investigates whether country characteristics (such as takeover market liquidity and investor protection) cause variation in the announcements' wealth effects. We observe a positive and significant price...