Abstract

 
 

Citations



 


 



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 Classification: G12, G34

Accepted Paper Series


Date posted: February 14, 2002  

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

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: 593

© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright
This page was processed by apollo2 in 0.265 seconds