The Bright Side of Fire Sales

• 成果类型: Article
• 署名作者: Meier, Jean-Marie; Servaes, Henri
• 署名单位: University of Texas System; University of Texas Dallas; University of London; London Business School; Centre for Economic Policy Research - UK
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhz019
• 发表日期: 2019
• 页码: 4228
• 关键词: Financial distress; ASSET SALES; corporate; bankruptcy; MARKET; acquisitions; returns; mergers; constraints; CHAPTER-11

摘要

Firms that buy assets in fire sales earn excess returns that are 2 percentage points higher than in regular acquisitions. The mechanism behind this result is the sellers' reduced bargaining power. We find no difference in real effects or in the combined returns for buyers and sellers between fire sales and regular acquisitions, suggesting that the quality of the match is similar in both types of transactions. The externalities of fire sales for other stakeholders are limited. These results indicate that the welfare losses associated with fire sales are smaller than previously thought.