The sources of shareholder wealth gains from going private transactions: The role of controlling shareholders

Autor: Alexis Cellier, Sabri Boubaker, Wael Rouatbi
Přispěvatelé: Institut de Recherche en Gestion (IRG), Université Paris-Est Marne-la-Vallée (UPEM)-Université Paris-Est Créteil Val-de-Marne - Paris 12 (UPEC UP12), Boubaker, Sabri
Jazyk: angličtina
Rok vydání: 2014
Předmět:
Zdroj: Journal of Banking and Finance
Journal of Banking and Finance, Elsevier, 2014, 43 (6), pp.226-246
ISSN: 0378-4266
Popis: International audience; The present study investigates the sources of shareholder wealth gains – as measured by cumulative abnormal returns and premiums – from going private transactions (GPTs). Using data for 314 GPTs from 18 Western European countries, we find that the announcements of GPTs generate a cumulative average abnormal return of about 22% and that pre-transaction shareholders on average receive a raw premium of about 36%. We further find that these shareholder wealth gains increase with the degree of separation of cash-flow and control rights of the pre-transaction ultimate owner and decrease with its ownership interests and with the presence of a second large shareholder. Taken together, these findings support the view that GPTs are expected to mitigate the inefficiencies induced by pre-transaction agency problems between controlling and minority shareholders. Thus, shareholder wealth gains from GPTs reflect the potential additional value that will be created under private ownership.
Databáze: OpenAIRE
Externí odkaz: