Do asset fire sales exist? An empirical investigation of commercial aircraft transactions

• 成果类型: Article
• 署名作者: Pulvino, TC
• 署名单位: Northwestern University
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/0022-1082.00040
• 发表日期: 1998
• 页码: 939-978
• 关键词: consistent covariance-matrix; MARGINAL TAX RATE; Financial distress; capital structure; AGENCY COSTS; corporate; performance; MARKET; debt; heteroskedasticity

摘要

This paper uses commercial aircraft transactions to determine whether capital constraints cause firms to liquidate assets at discounts to fundamental values. Results indicate that financially constrained airlines receive lower prices than their unconstrained rivals when selling used narrow-body aircraft. Capital constrained airlines are also more likely to sell used aircraft to industry outsiders, especially during market downturns. Further evidence that capital constraints affect liquidation prices is provided by airlines' asset acquisition activity. Unconstrained airlines significantly increase buying activity when aircraft prices are depressed; this pattern is not observed for financially constrained airlines.