FINANCIAL ECONOMIC ANTECEDENTS OF MALAYSIAN CORPORATE SPIN-OFFS-A FUZZY-SET QUALITY COMPARATIVE ANALYSIS

Abstract

What are the financial and economic antecedents of Corporate Spin-Offs (CSOs) in the emerging market of Malaysia? We identified and analysed the various combinations of theorised causal conditions as financial and economic antecedents preceding 40 corporate spin-offs on the Bursa Malaysia stock exchange from 1999 to 2022. The Methodology, fuzzy-set Quality Comparative Analysis (fsQCA) approach was employed to evaluate Revenue Growth, TobinQ, Focus, Gearing, and PE Ratio. We found the effects of these variables interactive and asymmetric, which Standard Regression Analysis will likely not capture their complexity. Necessity and Sufficiency Review applied, further substantiated the validity of the Casual Claims showing evidence of three different combinations of variables that motivate CSO strategies, and two compelling combinations of variables that cause companies to abstain from CSOs. Adding literature to CSOs studies through theoretical predictability, the results provide novel actionable insights to investors, business analysts, policy regulators, and researchers.