SSRN Home Search and Download Papers Browse Abstract and Paper Submission Subscribe to Networks View Briefcase Top Papers Top Authors Top Institutions

 

Abstract

 
 

Citations (18)

Beta

 


 



Pricing an Emerging Industry: Evidence from Internet Subsidiary Carve-Outs

Michael J. Schill
University of Virginia - Darden Graduate School of Business Administration

Chunsheng Zhou
Peking University - Guanghua School of Management - Finance



Financial Management, Vol. 30, Iss. 3, Autumn 2001

Abstract:     
We examine price behavior in the emerging Internet industry by comparing investor valuation of Internet subsidiary carve-outs with that of the parent. We provide examples of parent firms whose Internet carve-out holdings exceed the market value of the entire parent by a large amount and over an extended period of time. The results suggest that an important clientele of investors place greater value on direct Internet asset holdings than indirect holdings via the parent, and that arbitrage costs accommodate prolonged mispricing. We find that such price behavior is not exclusively an Internet sector result, but occurs in other emerging industries.

JEL Classifications: G12, G34

Accepted Paper Series

Date posted: February 14, 2002 ; Last revised: May 09, 2009

Suggested Citation

Schill, Michael J. and Zhou, Chunsheng , Pricing an Emerging Industry: Evidence from Internet Subsidiary Carve-Outs. Financial Management, Vol. 30, Iss. 3, Autumn 2001. Available at SSRN: http://ssrn.com/abstract=292600


Export to: Export Citation What's this?

Contact Information

Michael J. Schill (Contact Author)
University of Virginia - Darden Graduate School of Business Administration ( email )
P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-4071 (Phone)
434-243-7676 (Fax)
HOME PAGE: http://www.darden.virginia.edu/faculty/schill.htm
Chunsheng Zhou
Peking University - Guanghua School of Management - Finance ( email )
Beijing, 100871 Republic of China
8610-62768188 (Phone)
8610-62768266 (Fax)
Feedback to SSRN (Beta)


Paper statistics
Abstract Views: 374
Downloads: 0
Citations: 18

© 2010 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright
This page was served by apolloa 1 in 1.016 seconds.