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The Choice between Spin-offs and Sell-offs


  • Nixon, Terry D
  • Roenfeldt, Rodney L
  • Sicherman, Neil W


Spin-offs and sell-offs are alternative methods for divesting assets, but the effects on the parent firm differ substantially. We examine firms' characteristics that may influence the asset divestiture choice between a spin-off and sell-off. Results of the analysis indicate that the primary factors influencing the choice of divestiture type are financial distress, number of directors on the board, whether the CEO is also the Board Chair, and the size of the unit divested. Copyright 2000 by Kluwer Academic Publishers

Suggested Citation

  • Nixon, Terry D & Roenfeldt, Rodney L & Sicherman, Neil W, 2000. "The Choice between Spin-offs and Sell-offs," Review of Quantitative Finance and Accounting, Springer, vol. 14(3), pages 277-288, May.
  • Handle: RePEc:kap:rqfnac:v:14:y:2000:i:3:p:277-88

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    1. repec:eee:pacfin:v:49:y:2018:i:c:p:15-29 is not listed on IDEAS
    2. Prezas, Alexandros P. & Simonyan, Karen, 2015. "Corporate divestitures: Spin-offs vs. sell-offs," Journal of Corporate Finance, Elsevier, vol. 34(C), pages 83-107.

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