Fire sale acquisitions : Myth vs . reality

@inproceedings{Ang2016FireSA,
  title={Fire sale acquisitions : Myth vs . reality},
  author={James Ang and Nathan Mauck},
  year={2016}
}
We provide empirical evidence on the conjecture that in economic crises, firms could be forced to sell at deep discounts, or fire sale prices. Using the conventional stock price near the announcement date, we find instead distressed firms in crisis periods receive a 30% higher offer premium than distressed firms in normal periods; they also receive a 34% higher premium than non-distressed firms in crisis periods. Acquirers also do not gain, at announcement and over the long-term. Acquirers… CONTINUE READING

From This Paper

Topics from this paper.

Similar Papers

Loading similar papers…