Is It a Curse or a Blessing for a Distressed Public Company to Go Private Voluntarily?

Autor:	Martin Lewison, Garrison Hongyu Song
Rok vydání:	2018
Předmět:	Finance Private equity fund Reservation price Curse business.industry Stock exchange Blessing Equity (finance) business Listed company
Zdroj:	Journal of Accounting and Finance. 18
ISSN:	2158-3625
DOI:	10.33423/jaf.v18i10.240
Popis:	We establish a search based model to investigate the impact of the delisting risk on the distressed public company’s going private decision. We distinguish between two types of going private: voluntary delisting and involuntary delisting. Our simulation results show that there exists a tight link between them. Our model indicates that for any distressed public company, selling its entire equity voluntarily to a private equity fund at a price higher than its reservation price should not be considered as a curse, but rather as a blessing when compared to the worse scenario of being delisted involuntarily by the stock exchange.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::8367482764752fa1084517bf8982963b https://doi.org/10.33423/jaf.v18i10.240 Zobrazit plný text záznamu