Many companies use split-offs as a means to unlock shareholder value. The split-off effectively splits the company

Question:

Many companies use split-offs as a means to unlock shareholder value. The split-off effectively splits the company into two pieces, each of which can then be valued separately by the stock market. If managers are compensated based on reported profit, how might they strategically structure the splitoff? What corporate governance issues does this present?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: