This study examines the impact of asset sale proceeds on the method of payment used in subsequent acquisitions, along with their value effect. In line with increased liquidity offered by asset sales, firms that sell assets are more likely to subsequently conduct cash acquisitions. Additionally,...

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...