Determinants of Spin-off Efficiency in Emerging Markets

Using data about spin-offs in emerging markets from 2000 to 2015, we are considering the factors affecting the effectiveness of this type of restructuring. Spin-off researches in emerging markets are rather small, and the main factors on developed markets are geographic and production focus, as well as the size of the company (Daley L., Mehrotra V., Sivakumar R. (1997), Krishnaswami S., Subramaniam V. (1999), Desai H., Jain P.C. (1999)). Assuming that regardless of the market, the spin-off motives are identical, empirically test the influence of these factors on emerging markets. In addition, we add factors that, in our opinion, can influence on spin-off efficiency, such as company age, GDP dynamics and the degree of shareholder protection. This research will be useful to the shareholders of companies conducting spin-off in order to anticipate the reaction of the price of shares that they own.