Restructuring Top Management: Evidence from Corporate Spinoffs

Dice Center Working Paper No. 2001-15

47 Pages Posted: 29 Oct 2001

See all articles by Eric G. Wruck

Eric G. Wruck

Ohio State University (OSU) - Fisher College of Business

Karen H. Wruck

Ohio State University - Fisher College of Business, Department of Finance

Date Written: October 2001

Abstract

There has been substantial research on both asset restructuring and top management changes. The connection between the two, however, has received little attention. Here, we examine spinoffs as events through which top management is restructured. Our main findings are: 1) both firm-specific human capital and more general human capital, such as governance expertise and top management experience, affect the composition of spinoff firms' top management, 2) the structure of spinoff top management is related to the value created by a spinoff, and 3) for a subsample of firms, spinoffs serve as a form of management dismissal, with the opportunity to manage a smaller, weaker spinoff firm serving as a "consolation prize."

JEL Classification: G32, G34, G14, L22, J44, J63

Suggested Citation

Wruck, Eric G. and Wruck, Karen H., Restructuring Top Management: Evidence from Corporate Spinoffs (October 2001). Dice Center Working Paper No. 2001-15. Available at SSRN: https://ssrn.com/abstract=285336 or http://dx.doi.org/10.2139/ssrn.285336

Eric G. Wruck

Ohio State University (OSU) - Fisher College of Business ( email )

2100 Neil Avenue
Columbus, OH 43210-1144
United States

Karen H. Wruck (Contact Author)

Ohio State University - Fisher College of Business, Department of Finance ( email )

2100 Neil Avenue
Columbus, OH 43210-1144
United States
614-292-4330 (Phone)
614-292-2418 (Fax)

HOME PAGE: http://https://fisher.osu.edu/people/wruck.1

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