Dynamic Asset Sales with a Feedback Effect

• 成果类型: Article
• 署名作者: Frenkel, Sivan
• 署名单位: Tel Aviv University
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhz058
• 发表日期: 2020
• 页码: 829
• 关键词: market; disclosure; INFORMATION; price; incentives; selection; QUALITY; FIRMS; MODEL

摘要

I analyze a dynamic model of over-the-counter asset sales in which the seller receives stock-sensitive compensation, and the transaction conveys information about the firm's value. I examine how the market's response to an asset sale feeds back to the seller's decision on the timing and the sale price and analyze the unique pattern of stock prices before and after the sale. The implications of bargaining power, inventories, gains from synergy, and the introduction of a vesting period are discussed. The model sheds light on observed properties of corporate sell-offs and explains market dry-ups during downturn periods.