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Title: Corporate spinoffs and executive compensation
Authors: Law, J 
Yu, W
Keywords: Spinoffs
Corporate governance
CEO compensation
Issue Date: 2018
Publisher: Higher Education Press
Source: Frontiers of business research in China, Dec. 2018, v. 12, no. 1, 23, p. 1-25 How to cite?
Journal: Frontiers of business research in China 
Abstract: This paper investigates the impact of corporate spinoffs on executive compensation. We find no significant association between executive compensation and stock returns prior to spinoffs, but a significant positive association between the two afterwards. We also find evidence that corporate governance generally improves after the spinoff. In addition, the positive association between executive compensation and stock returns is more pronounced for firms with greater improvements in their corporate governance. Overall, our findings support the notion that spinoffs create value by reducing agency costs.
ISSN: 1673-7326
EISSN: 1673-7431
DOI: 10.1186/s11782-018-0043-9
Rights: © The Author(s). 2018 Open Access This article is distributed under the terms of the Creative Commons Attribution 4.0 InternationalLicense (, which permits unrestricted use, distribution, and reproduction in any medium,provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, andindicate if changes were made.
The following publication Law, J., & Yu, W. (2018). Corporate spinoffs and executive compensation. Frontiers of Business Research in China, 12(1), 23, 1-25 is available at
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