Pre-Going Private Ownership Around the World
British Journal of Management, Forthcoming
42 Pages Posted: 31 Jan 2016 Last revised: 13 Dec 2017
Date Written: December 7, 2017
Going private transactions are often highly leveraged, and give rise to potential agency conflicts among existing shareholders. But who exactly are those shareholders, and under what legal conditions are these transaction more likely to occur? We examine ownership structure prior to going private transactions in 33 countries around the world from 2002 to 2014.The data indicate strong and consistent evidence that pre-going private ownership is characterized by higher institutional and corporate ownership. Family ownership lowers the probability of a public to private transaction. Stronger creditor rights increase the probability of going private particularly for whole company and institutional buyouts.
Keywords: Ownership; Law and finance; Public to private transactions
JEL Classification: G2, G21, K22
Suggested Citation: Suggested Citation