Value Generation through Spin-Off: Evidence from India
Corporate rebuilding has gained momentum in the current era as more number of corporates are adopting various methods of corporate restructuring. This research focuses on the effect of spin-off on the value generation of the demerged entities. Ten sample demerged companies have been taken into consideration over a period ranging from 2011-12 to 2018-19. Sample paired t-test has been applied to analyse the effect of spin-off on value generation of the demerged entities based. Results suggest that spin-off is not an excellent strategic decision in generating value for the firm.
Keywords - Spin-off, Paired t Test, SVA, MVA, Value Generation