Spin-off and Treasure Shares Magic: Focusing on the Korean Distribution Industry

• 영문명: Spin-off and Treasure Shares Magic: Focusing on the Korean Distribution Industry
• 발행기관: 한국유통과학회
• 저자명: 신일항(Ilhang SHIN) 문태곤(Taegon MOON)
• 간행물 정보: 『유통과학연구(JDS)』제21권 제12호, 83~89쪽, 전체 7쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2023.12.31

영문 초록

Purpose: Research on spin-off and treasury stock is necessary because the market has realized that this can be utilized for major shareholder private interest. Considering the unique characteristic of a spin-off and treasury stock in the Korean stock market, this study contributes to the literature by examining the effects on shareholder value in the Korean distribution industry. Research design, data, and methodology: The present study investigates literature, analyst reports, and news articles to examine the spin-off process and analyze how treasury stock magic happens. Results: Setting the exchange ratio favoring Spin-Co in the spin-off is the leading cause for reducing the minor shareholders’ value. Moreover, treating treasury stock as an asset is also problematic, allowing the allocation of Spin- Co shares. This leads to an increase in the major shareholder controls of Spin-Co without any contribution from the major shareholders. Therefore, the exchange ratio should be calculated reasonably, and treasury stock from the stock repurchase should be treated as stock retirement. Conclusion: By analyzing the spin-off and how treasury stock magic occurs, this study provides recommendations to improve shareholder value. Moreover, it contributes to the maturation of the Korean capital market by promoting a discussion on the revision of spin-off and treasury stock.

목차

1. Introduction

2. Spin-off and Holding Company in Korea

3. Spin-off Issues in Korea

4. A Case of Lotte Spin-off

5. Conclusions

References

키워드

Spin-off Treasury Stock Magic In-kind Transfer Holding Company Shareholder Value