The market for interfirm asset sales: Partial sell-offs and total liquidations
We investigate the valuation consequences of voluntary proposals to sell part or all of a corporation's assets. For partial sell-offs, successful sellers and buyers reap statistically significant abnormal returns of 1.66% and 0.83%, respectively. Unsuccessful sellers realize gains at the bid an...
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| Veröffentlicht in: | Journal of financial economics 1987-06, Vol.18 (2), p.229-252 |
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| container_end_page | 252 |
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| container_issue | 2 |
| container_start_page | 229 |
| container_title | Journal of financial economics |
| container_volume | 18 |
| creator | Hite, Gailen L. Owers, James E. Rogers, Ronald C. |
| description | We investigate the valuation consequences of voluntary proposals to sell part or all of a corporation's assets. For partial sell-offs, successful sellers and buyers reap statistically significant abnormal returns of 1.66% and 0.83%, respectively. Unsuccessful sellers realize gains at the bid announcement of 1.41% that are lost at the offer termination. In contrast, proposals to liquidate the firm are associated with significant average abnormal returns of 12.24%. We interpret these findings as evidence that asset sales are associated with the movement of resources to higher-valued uses rather than as evidence of market mispricing before the divestiture announcements. |
| doi_str_mv | 10.1016/0304-405X(87)90040-7 |
| format | Article |
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| fulltext | fulltext |
| identifier | ISSN: 0304-405X |
| ispartof | Journal of financial economics, 1987-06, Vol.18 (2), p.229-252 |
| issn | 0304-405X 1879-2774 |
| language | eng |
| recordid | cdi_proquest_journals_231759558 |
| source | RePEc; Elsevier ScienceDirect Journals; Periodicals Index Online |
| subjects | Abnormal returns Assets Divestiture Liquidation Markets Mathematical models Sales Statistical analysis Studies |
| title | The market for interfirm asset sales: Partial sell-offs and total liquidations |
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