Asset sales and subsequent acquisitions

Giang Nguyen, Le Vu*

*この研究の対応する著者

研究成果: Article査読

抄録

In this paper, we find that the decisions to retain asset sale proceeds are positively related to the likelihood of subsequent acquisitions. We demonstrate that retention decisions destroy the wealth of shareholders. First, we document negative market reactions towards a retention decision, and the effect is more pronounced when the decision is followed by an unexpected acquisition. Second, we show that subsequent acquisitions reduce the wealth of shareholders, especially when the acquisitions are unexpected by the market. Third, retention sellers’ long-run performance declines when they pursue an acquisition following the sale of their assets. Altogether, we provide novel evidence suggesting that retention sellers tend to reallocate proceeds to specific acquisitions that are detrimental to shareholders’ wealth.

本文言語English
ページ(範囲)87-97
ページ数11
ジャーナルInternational Review of Financial Analysis
60
DOI
出版ステータスPublished - 2018 11

ASJC Scopus subject areas

  • 財務
  • 経済学、計量経済学

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