Estimation of Control Premium: The Case of Romanian Listed Companies
Economic Computation and Economic Cybernetics Studies and Research, Vol. 41, No. 3-4, 2007, pp. 55-72
19 Pages Posted: 29 Nov 2012
Date Written: 2007
Control premium estimation is one of the main issues in Corporate Finance, strongly related to Corporate Governance principles and minority shareholders’ protection. Taking into account the fact that the literature mainstream within estimating control premium does not make references to the companies listed on Romanian capital market this study aims to bring more information on this issue. Control premium was estimated as the abnormal return at the moment of tender bid announcements, and the results revealed a mean around 80% and a median around 44%. Such larger control premium could be an evidence for a low minority shareholders’ protection.
Keywords: Corporate governance, Control premium, Minority shareholders’ protection, Capital markets, Romania
JEL Classification: G34
Suggested Citation: Suggested Citation