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Selling to buy: Asset sales and acquisitions

Mavis, Christos P.; McNamee, Nathan P.; Petmezas, Dimitris; Travlos, Nickolaos G.

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Christos P. Mavis

Nathan P. McNamee

Nickolaos G. Travlos


This study explores the impact of joint corporate asset restructuring decisions, where firms sell an asset in order to fund a subsequent acquisition (selling-to-buy). We find that firms with asset sales are associated with increased acquisition probability. The effect is more pronounced for financially constrained firms. We also show that, in addition to the established improved firm efficiency from focus-increasing asset sales, financially constrained firms obtain the necessary funds to conduct focus-increasing acquisitions, improving further their efficiency. This translates into both higher long-run operating performance and stock abnormal returns at the asset sale announcement.


Mavis, C. P., McNamee, N. P., Petmezas, D., & Travlos, N. G. (2020). Selling to buy: Asset sales and acquisitions. Journal of Corporate Finance, 62, Article 101587.

Journal Article Type Article
Acceptance Date Feb 2, 2020
Online Publication Date Feb 6, 2020
Publication Date 2020-06
Deposit Date Jul 29, 2020
Publicly Available Date Aug 6, 2021
Journal Journal of Corporate Finance
Print ISSN 0929-1199
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 62
Article Number 101587
Public URL
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