The Impact of Corporate Spinoff on Research and Development Expense

  • 吳 芸萱

Student thesis: Master's Thesis

Abstract

Divestiture activities have become more and more common in recent years representing that more and more firms are adjusting their portfolio structure by divestiture The market capitalization of the companies undertaking spinoffs in 2014 is set to hit $664 billion by the end of the year Moreover the value of corporations that have already announced spinoffs for 2015 is at $775 billion which means more and more spinoff are undertaken recently This study aims to investigate whether spinoff could affect the R&D expense and whether financial conditions of the parent firm could affect the decrease of the R&D expense 72 firms that spinoff during 2000 to 2013 in the U S are selected into analysis in this study The regressions result didn’t find significant decrease of R&D expense of parent firm after spinoff However the empirical analysis provides convincing evidence that profitability have a positive impact on the decrease of R&D expense after spinoff
Date of Award2016 Aug 31
Original languageEnglish
SupervisorShao-Chi Chang (Supervisor)

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