| Article ID: | iaor201522911 |
| Volume: | 10 |
| Issue: | 4 |
| Start Page Number: | 321 |
| End Page Number: | 328 |
| Publication Date: | Dec 1987 |
| Journal: | Journal of Financial Research |
| Authors: | Davidson Wallace N, McDonald James L |
| Keywords: | investment |
Corporate spinoffs and divestitures cause positive revaluation of the firm by the market. This paper examines a particular kind of spinoff, one of mineral interests into a royalty trust. Royalty trusts are associated with abnormal returns that come from positive market revalution and from special tax incentives inherent to trusts.