Faculty News

Prof. JP Eggers discusses HP's spinoff into two companies

Excerpt from Bloomberg -- "Traditionally, we've seen value coming from spinoffs. Usually, we don't see these two big split ups like this, more spinning off of individual divisions and things like that... It tends to create value both in the short term in the stock market and long-term in performance, partly because managers can focus more on the needs and wants of individual businesses and they are heterogeneous businesses in that perspective. Also, incentives work better in more focused companies as well."

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