Skip to Main content Skip to Navigation
Conference papers

Motivations of Public to Private Transactions: an international study

Abstract : This article deals with the motivations and the different sources of value from Public to Private Transactions in Europe, USA and Asia from 2000 to 2007. We determine eight main motivations (Tax savings, Incentive realignment, Control, Free Cash Flow, Growth of Prospects, Transaction Costs, Takeover Defence and Undervaluation). Then, we evaluate the shareholder wealth by measuring the offered premiums and the CAAR (Cumulative Average Abnormal Return). Finally we analyse the impact of Public to Private to the wealth shareholder. The main sources for firms from going private are incentive realignment, Free Cash Flow (mostly for Asia), the economy of cost transaction and undervaluation. Furthermore, taxation benefit is a source of wealth effects for Asia and Family blockholder (for the control hypothesis) is significant for Europe. Premiums and CAAR are the most important for the USA and Asia. The main observation that we have made, is that Asia gets the same behavior as the USA.
Document type :
Conference papers
Complete list of metadata

Cited literature [46 references]  Display  Hide  Download

https://halshs.archives-ouvertes.fr/halshs-00521239
Contributor : Aurelie Sannajust Connect in order to contact the contributor
Submitted on : Sunday, September 26, 2010 - 10:28:46 PM
Last modification on : Wednesday, May 26, 2021 - 12:48:02 PM
Long-term archiving on: : Monday, December 27, 2010 - 2:44:22 AM

File

Article_Miss_Aurelie_SANNAJUST...
Files produced by the author(s)

Identifiers

  • HAL Id : halshs-00521239, version 1

Citation

Aurelie Sannajust. Motivations of Public to Private Transactions: an international study. A la recherche de la performance : de l'auto-entreprise à la PME partenariale, May 2010, CASABLANCA, Morocco. ⟨halshs-00521239⟩

Share

Metrics

Record views

507

Files downloads

1218