Pre-Going Private Ownership Around the World

British Journal of Management, Forthcoming

42 Pages Posted: 31 Jan 2016 Last revised: 13 Dec 2017

See all articles by Douglas J. Cumming

Douglas J. Cumming

Florida Atlantic University

Rejo Peter

York University - Schulich School of Business

Aurelie Sannajust

IAE Saint-Etienne

Monika Tarsalewska

University of Exeter Business School

Date Written: December 7, 2017

Abstract

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

Cumming, Douglas J. and Peter, Rejo and Sannajust, Aurelie and Tarsalewska, Monika, Pre-Going Private Ownership Around the World (December 7, 2017). British Journal of Management, Forthcoming . Available at SSRN: https://ssrn.com/abstract=2724511 or http://dx.doi.org/10.2139/ssrn.2724511

Douglas J. Cumming (Contact Author)

Florida Atlantic University ( email )

777 Glades Rd
Boca Raton, FL 33431
United States

HOME PAGE: http://booksite.elsevier.com/9780124095373/

Rejo Peter

York University - Schulich School of Business ( email )

4700 Keele Street
Toronto, Ontario M3J 1P3
Canada

Aurelie Sannajust

IAE Saint-Etienne ( email )

rue tréfilerie
Saint Etienne, 42000
France

Monika Tarsalewska

University of Exeter Business School ( email )

XFI building, Streatham Campus
Rennes Drive
Exeter, Devon EX4 4ST
United Kingdom

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