Performance Benefits of Tight Control

31 Pages Posted: 22 Oct 2010 Last revised: 15 Mar 2011

See all articles by Andrej Gill

Andrej Gill

Johannes Gutenberg University Mainz

Nikolai Visnjic

Goethe University Frankfurt

Multiple version iconThere are 2 versions of this paper

Date Written: February 15, 2011

Abstract

This paper sheds light on the choice between being a listed company and having a dispersed ownership structure rather than being privately held and having a concentrated ownership structure. In order to investigate this decision we consider reverse leveraged buyouts and analyze relative operational performance during their private period. We see significant positive abnormal growth rates in several performance ratios within our sample of private companies. Our analysis suggests that performance differences stem from efficiency gains (focus on core business and cost reduction).

Keywords: LBO, RLBO, IPO, Private Equity, Corporate Control, Restructuring

JEL Classification: 10, 14, 23, 30, 32, 34

Suggested Citation

Gill, Andrej and Visnjic, Nikolai, Performance Benefits of Tight Control (February 15, 2011). Available at SSRN: https://ssrn.com/abstract=1695879 or http://dx.doi.org/10.2139/ssrn.1695879

Andrej Gill (Contact Author)

Johannes Gutenberg University Mainz ( email )

Saarstr. 21
Jakob Welder-Weg 4
Mainz, 55122
Germany

Nikolai Visnjic

Goethe University Frankfurt ( email )

Grüneburgplatz 1
Frankfurt am Main, 60323
Germany

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