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

See all articles by Victor Dragota

Victor Dragota

Bucharest University of Economic Studies

Dalina Dumitrescu

affiliation not provided to SSRN

Gheorghe Ruxanda

affiliation not provided to SSRN

Anamaria Ciobanu

affiliation not provided to SSRN

Iulian Brasoveanu

affiliation not provided to SSRN

Andreea Maria Stoian

Bucharest Academy of Economic Studies

Carmen Lipara

Bucharest Academy of Economic Studies

Date Written: 2007

Abstract

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

Dragota, Victor and Dumitrescu, Dalina and Ruxanda, Gheorghe and Ciobanu, Anamaria and Brasoveanu, Iulian and Stoian, Andreea Maria and Lipara, Carmen, Estimation of Control Premium: The Case of Romanian Listed Companies (2007). Economic Computation and Economic Cybernetics Studies and Research, Vol. 41, No. 3-4, 2007, pp. 55-72. Available at SSRN: https://ssrn.com/abstract=2181977

Victor Dragota (Contact Author)

Bucharest University of Economic Studies ( email )

Piața Romană 6
Bucharest, 010374
Romania

Dalina Dumitrescu

affiliation not provided to SSRN ( email )

Gheorghe Ruxanda

affiliation not provided to SSRN ( email )

Anamaria Ciobanu

affiliation not provided to SSRN ( email )

Iulian Brasoveanu

affiliation not provided to SSRN ( email )

Andreea Maria Stoian

Bucharest Academy of Economic Studies ( email )

Piata Romana, No.6
Bucharest
Romania

Carmen Lipara

Bucharest Academy of Economic Studies ( email )

Piața Romană 6
Bucharest, 010374
Romania

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