Value creation through listed spin-offs

: Portuguese case study

Abstract

This dissertation explores the potential for value creation through spin-offs, focusing on the case of Greenvolt’s spin-off from Altri. Spin-offs, as a corporate restructuring strategy, aim to unlock shareholder value by improving managerial focus, reducing information asymmetry, and optimizing capital allocation. Through a comprehensive literature review and the application of event study methodology, this research evaluates the impact of Greenvolt’s spin-off on shareholder value, utilizing cumulative abnormal returns (CAR) across three statistical models: the Constant Mean Return Model, the Market Model, and the Market-Adjusted Model. The results demonstrate statistically significant positive CARs, particularly in longer event windows, highlighting the effectiveness of spin-offs in value creation. The case study underscores the applicability of these findings in the Portuguese and European contexts, where such strategies are less common compared to the United States. The findings emphasize that spin-offs, when aligned with strategic goals and market conditions, are a powerful tool for corporate restructuring and shareholder value creation. This research contributes to the academic debate by validating the relevance of spin-offs in different markets and provides practical insights for corporate managers and policymakers. Furthermore, it also highlights opportunities for future research, particularly regarding long-term performance.

Date of Award	24 Mar 2025
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Luis Pacheco (Supervisor)