Pre-going private ownership around the world
Cumming, D; Peter, R; Sannajust, A; et al.Tarsalewska, M
Date: 15 February 2018
Article
Journal
British Journal of Management
Publisher
Wiley
Publisher DOI
Abstract
Going private transactions are often highly leveraged, and give rise to potential agency conflicts among existing shareholders. But who exactly are those shareholders, and under what legal conditions are these transactions more likely to occur? We examine ownership structure prior to going private transactions in 33 countries around ...
Going private transactions are often highly leveraged, and give rise to potential agency conflicts among existing shareholders. But who exactly are those shareholders, and under what legal conditions are these transactions more likely to occur? We examine ownership structure prior to going private transactions in 33 countries around the world from 2002 to 2014. The data indicate strong and consistent evidence that pre-going private ownership is characterized by higher institutional and corporate ownership. Family ownership lowers the probability of a public to private transaction. Stronger creditor rights increase the probability of going private, particularly for whole company and institutional buyouts.
Finance and Accounting
Faculty of Environment, Science and Economy
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