Applied Mathematics and Nonlinear Sciences
Journal license

Journal

Applied Mathematics and Nonlinear Sciences


Volume
& Issue

Volume 6, Issue 2


Published
on

May 26, 2021


Pages

1993-2008


DOI

Article

Value Creation of Real Estate Company Spin-off Property Service Company Listing

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Authors

Zhang Yang Affiliation:
School of Economics and Management Beijing Forestry University, Beijing 100083, China
, Zhu Yumeng Affiliation:
School of Economics and Management Beijing Forestry University, Beijing 100083, China
, Zhiruo Wang Affiliation:
School of Economics and Management Beijing Forestry University, Beijing 100083, China
, Sun Jie Affiliation:
School of Economics and Management Beijing Forestry University, Beijing 100083, China
and Wu Chengliang Affiliation:
School of Economics and Management Beijing Forestry University, Beijing 100083, China


Abstract

The paper took 12 groups of parent companies and subsidiaries as the samples, in which the property service companies, spun from the real estate companies, have successfully on the capital market. The research showed that the average abnormal return (AAR) of real estate companies’ stocks was positive on the first announcement date of possible spin-off listing, while the cumulative average abnormal return (CAAR) remained positive for 21 days during the (–11, 9) days around the first announcement of possible spin-off and listing. Further, the changes in operating performance of real estate companies and property service companies were analysed after the successful spin-off for 3 consecutive years, compared with the year before the spin-off and listing. The results showed that after the spin-off and listing, real estate companies and property service companies have greatly improved their performance. Therefore, the fact that real estate companies spun off property service companies created positive values for shareholders.


Keywords

real estate companies, property service companies, spin-off and listing, value creation


Citation

Yang, Z., Yumeng, Z., Wang, Z., Jie, S., & Chengliang, W. (2021). Value creation of real estate company spin-off property service company listing. Applied Mathematics and Nonlinear Sciences, 6(2), 1993–2008. https://doi.org/10.2478/amns.2021.2.00019

Published by: Engineering Journals

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