Asset Sales, Investment Opportunities, and the Use of Proceeds

By Thomas W. Bates. 2005

252 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/1a0d93b1ee43d3003262e9c5d8c549c0f9fd9a3b

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Citations in the corpus

Human capital relatedness and mergers and acquisitions (2018, unknown): “Requiring that the seller is publicly traded, not from the financial industry, and that the transaction has a value of at least $75 million (as in Bates, 2005) gives us an initial sample of 2,553 asset sales.”
Over-investment of free cash flow (2006, unknown): “I include additional control variables that have been shown in prior research to be determinants of investment decisions, including leverage, firm size, firm age, the level of cash, past stock returns and prior firm level investment (e.g., Barro 1990; Bates, 2005; Hubbard, 1998; Lamont, 2000).”
Bringing it Home: A Study of the Incentives Surrounding the Repatriation of Foreign Earnings Under the American Jobs Creation Act of 2004 (2009, background): “In addition, our work contributes to the debate on how firms use windfall profits/cash flow (Blanchard, Lopez-deSilanes, and Shleifer 1994; Bates 2005).”
Corporate investment efficiency: The role of financial development in firms with financing constraints and agency issues in OECD non-financial firms (2019, background): “…that cause over-investment in firms, a number of researchers have documented evidences predominantly linking the presence of high level of free cash flow with over-investment (such as, Bates, 2005; Blanchard et al., 1994; Guariglia & Yang, 2016; Jensen, 1986; Richardson, 2006, among others).”
A balancing act: Managing financial constraints and agency costs to minimize investment inefficiency in the Chinese market (2016, methodology): “he expected investment estimate based on Bates' method (2005) is an out-of-sample estimate in a group of peer companies, this can tackle the concern that the d investment based on Richardson's (2006) method might be endogenous. If measuring abnormal investment using both methods delivers similar res”
Seasoned Equity Offerings: What Firms Say, Do, and How the Market Reacts (2008, unknown): “Using rational expectations in a manner similar to Pilotte (1992), Denis (1994), and Bates (2004), we include the change in investment (INV), long term debt (LTD), and working capital (WC) from year -1 to year +1, all standardized by the firm’s book value of assets in year -1, as proxies for the mar”
Big Data as a Governance Mechanism (2019, unknown): “Agency problems, which result from the separation of ownership and control, have been shown in several papers to induce empire building or overinvestment of free cash flow (Jensen 1986; Harford 1999; Bates 2005; Richardson 2006).”
The price of corporate liquidity: Acquisition discounts for unlisted targets (2007, unknown): “Bates (2005) studies the use of cash generated by subsidiary sales, how firms’ investment opportunities and capital structures affect the use to which subsidiary sale proceeds are put, and the market reaction to such decisions. Schlingemann, Stulz, Walkling (2002) (SSW) demonstrates that firms are m”