Analysis of Spin-Off Performances of Companies in the Energy Industry in Russia

The thesis "Analysis of spin-off perfromances of companies in the energy industry in Russia" researchs on 34 pages the effects of refocusing on the market value performance of spin-offs in the energy industry in Russia. According to the author, the work aims at providing a valuable basis for changing managerial decisions in Russia towards investment strategies of specialization and increasing international competitiveness. In order to examine refocusing effects the research uses excess value measures, which estimates the percentage difference between a firm’s total value and the sum of imputed values for its segments as stand-alone entities. In the beginning, the research verifies the existence of differences in excess value for spin-off and diversified firms. Consequently, spin-offs show a significant increase in market value between 22,6% to 24,5% compared to diversified firms. Nevertheless, the author finds that the number of diversified firms remains on a high level as the management of diversified firms ignores value enhancing refocusing programs due to the active ownership role of the state resulting in fulfilling states interests rather than economically reasonable decisions.