D9-57. Ethics and Governance: Equity Carve-Outs Many companies use split-offs as a means to unlock shareholder value.
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D9-57. Ethics and Governance: Equity Carve-Outs 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 split-off?
What corporate governance issues does this present?
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Related Book For 
Financial Statement Analysis And Valuation
ISBN: 9781618532336
5th Edition
Authors: Peter D. Easton, Mary Lea McAnally, Gregory A. Sommers
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