Others carved out
units but failed to give them the strong management teams they needed; still others simply failed to take advantage of the new structure, applying the same old compensation and management practices as before.
We track the parent companies' ownership stake of the carved out
subsidiary for the four years following the carve-out and measure operating performance of the parent and subsidiary companies' assets for six years following the carve-out.
So it carved out
HCIA in the expectation that its stock would achieve a higher price-to-earnings ratio, making it a more powerful currency with which to finance the acquisition of another provider.
The hypothesis also predicts that carve-outs could result in operating improvements for both the parent and the carved out
An equity carve-out is defined as an event in which the parent sells equity claims in a subsidiary through a public cash offering, but retains a majority holding in the carved out
subsidiary for financial reporting, tax, or control considerations.