Learning about Internal Capital Markets from Corporate Spin-offs

By R. Gertner, E. A. Powers, D. Scharfstein. 2002

169 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/6a4877d3304de8216472ca394c620ea8b6f7e721

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In Accounting

1. Vikram K. Nanda
2. Timothy R. Burch
3. Yuhai Xuan
4. M. Brauer

In Finance

1. Vikram K. Nanda
2. Timothy R. Burch
3. Yuhai Xuan
4. M. Brauer

In Strategy and Management

1. Vikram K. Nanda
2. Yuhai Xuan

Citations in the corpus

• Divestitures and Divisional Investment Policies (2003, unknown): “Our work complements Gertner, Powers, and Scharfstein (2002) who show improved investment of spun-off subsidiaries helps explain the gains from spin-offs.”
• Divisional diversity and the conglomerate discount: evidence from spinoffs (2003, background): “Most studies, however, do not directly link value gains from spinoffs to attributes of the diversified firm’s internal capital market as we do. Two exceptions are Gertner et al. (2002) and McNeil and Moore (2001).”
• Does Diversification Destroy Value? Evidence From Industry Shocks (2000, unknown): “Gertner, Powers, and Scharfstein (1999) find that the investment of spun-off segments changes in a way consistent with the inefficient internal capital markets hypothesis.”
• Productivity, Restructuring, And The Gains From Takeovers (2013, unknown): “6Previous studies on investment efficiency and corporate spin-offs (Gertner, Powers, and Scharfstein, 2002; Dittmar and Shivdasani, 2003) use similar regressions and find firms’ investment sensitivities to Q rise after spin-offs.”
• Empire-Building or Bridge-Building? Evidence from New CEOs' Internal Capital Allocation Decisions (2009, background): “…have addressed the concerns by examining the change in investment sensitivity to Q around refocusing corporate events at conglomerates such as spin-offs (Gertner, Powers, and Scharfstein 2002) and divestitures (Dittmar and Shivdasani 2003).31 A positive change in the Q-sensitivity is interpreted…”
• Spin-Offs, Divestitures, and Conglomerate Investment (2007, unknown): “Also used in Gertner, Powers, and Scharfstein (2002) and Ahn and Denis (2004), this measure captures the idea that the more efficient a firm, the more its investment should respond to changes in investment opportunities.”
• Does Diversification Create Value in the Presence of External Financing Constraints? Evidence from the 2007-2009 Financial Crisis (2016, unknown): “3 The potential benefits of diversification include: debt coinsurance (Lewellen, 1971); efficient internal capital markets (Alchian (1969), Weston (1970), Williamson (1975), Gertner et al. (1994), Stein (1997)); use of nontradable resources (Penrose, 1959); economies of scope (Panzar and Willig (197”