Corpus ID: 168727457

Selling to buy : asset sales and mergers and acquisitions.

  title={Selling to buy : asset sales and mergers and acquisitions.},
  author={Nathan P. McNamee},
This thesis studies the effects of using proceeds from asset sales as a source of funding for mergers and acquisitions (M&As). The first empirical chapter investigates the financing decisions made by acquiring firms and seeks to test a new theoretical framework proposed by Edmans and Mann (2017) which models a firm’s funding choice between asset sales and equity offerings. Their theory identifies settings in which a firm may prefer to select one financing source over the other, which may… Expand


The Real Determinants of Asset Sales
In this paper I develop a dynamic structural model in which a firm makes rational decisions to buy or sell assets in the presence of both idiosyncratic and aggregate productivity shocks. ByExpand
The Market for Corporate Assets: Who Engages in Mergers and Asset Sales and are There Efficiency Gains?
We analyze the market for firms, divisions, and plants of manufacturing firms using a large sample of plant-level data for the period 1974-92. There is an active market for corporate assets, withExpand
Equity and Cash in Intercorporate Asset Sales: Theory and Evidence
We develop a two-sided asymmetric information model of asset sales that incorporates the key differences from mergers and allows the information held by each party to be impounded in the transaction.Expand
Corporate Cash Reserves and Acquisitions
The acquisition behavior of cash-rich firms is examined for evidence of free cash flow-related behavior. A model of cash management is developed and used to identify a sample of cash-rich firms. TheExpand
R&D sensitivity to asset sale proceeds: New evidence on financing constraints and intangible investment
We examine the intersection between corporate divestitures of tangible assets and investment in intangible capital (R&D) to provide new tests for the impact financing constraints have on realExpand
Do Firms Have Leverage Targets? Evidence from Acquisitions
In the context of large acquisitions, we provide evidence on whether firms have target capital structures. We examine how deviations from these targets affect how bidders choose to financeExpand
Financing Constraints and Corporate Investment
Most empirical models of investment rely on the assumption that firms are able to respond to prices set in centralized securities markets (through the "cost of capital" or "q"). An alternativeExpand
Value creation in corporate asset sales: The role of managerial performance and lender monitoring
Abstract Examining stockholder and bondholder wealth of acquirers and sellers, we find that asset sales are firm value enhancing for the seller but value neutral for the acquirer. AlthoughExpand
Asset Sales, Firm Performance, and the Agency Costs of Managerial Discretion
We argue that management sells assets when doing so provides the cheapest funds to pursue its objectives rather than for operating efficiency reasons alone. This hypothesis suggests that (1) firmsExpand
What Determines the Financing Decision in Corporate Takeovers: Cost of Capital, Agency Problems, or the Means of Payment?
While the means of payment in takeovers has been a focal point in the takeover literature, what has largely been ignored is the analysis of how the takeover bid is financed and what its impact is onExpand