earticle

영어

This paper provides an alternative explanation for asset sales. I take as my starting point that selling assets could be viewed as the sale of securities to the firm. This paper reports that firms selling assets during the period 1990~2007 substantially perform worse than their matching firms. I document that long-run, post-sale underperformance is similar to intial public offerings and seasoned securities offerings. This empirical evidence is consistent with the windows of opportunity hypothesis which implies that managers take advantage of selling overvalued assets. I also find that there is no difference in the long-run abnormal stock returns among three types of reason for the asset sale. This paper concludes that the underperformance problem is not just an security offering phenomenon but a more general sale effect.