In this bachelor’s thesis there was examined what kind of effects a publicly listed company’s stock price has when a company in the OMXH demerges from the parent company and both of the companies, the newborn and the parent, have then their securities available in the stock market for buying and selling. The earlier research on spinoffs, mainly in the US, implies that there are average abnormal returns in these situations. In this research, the spinoffs were established between 1994 and 2013 in Finland and there were in total of 16 demergers. There was exploited quantitative analysis as well as CAP -model in this study to find answers for the following questions: Does a spin-off effect on a company’s stock price? Is the effect positive, negative or is there any effect at all?

The results of this thesis provide new information and knowledge for future operations for researchers, analysts, teachers, students, companies, management and especially to investors. According to the results, there can be seen many effects on the stock prices when a company demerges. The effect seems to be company-dependent. When investing on the right time, there are many spinoffs that give good returns on average, but as usual and typical for stock markets, there are also spinoffs that give negative or no returns.