Journal of Corporate Finance Vol. 22 2013
Value creation from asset sales: New evidence from bond and stock markets
Abstract
This paper examines the influence of capital structure change on the value creation from asset sales. We find significant positive equity and debt excess returns are concentrated in the subsample of highly leveraged firms that use the proceeds to retire debt. Low leverage firms display no consistent significant excess equity or bond returns. The existent literature has focused on efficiency redistribution, increase in focus, and access to capital for investment as the primary drivers of value creation from asset sales and agency costs as a major factor that mitigates this value creation. The evidence presented in this paper suggests that the primary driver of value creation is from capital structure change for highly leveraged firms.
- DOI
- 10.1016/j.jcorpfin.2013.03.002
- Volume
- 22
- Pages
- 1-15
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref