A new spin on spin-offs

Chemmanur and Nandy provide an interesting look at Spin-offs. I will post more about it later..

for now a link and a quote:

"We show that the improvement in the average productivity of plants following spin-offs is driven primarily by improvements in the productivity of plants continuing with the parent firm, and not from productivity improvements in plants belonging to the spun-off entity.

However, contrary to the speculation in the existing literature, we document that plants that are spun-off do not perform worse than those belonging to the parent prior to the spin-off: in fact, plants in the spun-off entity perform better than the parent plants prior to the spin-off."