Motivations and Performance of Public to Private Transactions: an international study

This article deals with the motivations and the different sources of value from Public to Private Transactions in Europe, USA and Asia from 2000 to 2007. We determine eight main motivations (Tax savings, Incentive realignment, Control, Free Cash Flow, Growth of Prospects, Transaction Costs, Takeover Defence and Undervaluation). Then, we evaluate the shareholder wealth by measuring the offered premiums and the CAAR (Cumulative Average Abnormal Return). Finally we analyse the impact of Public to Private to the wealth shareholder. The main sources for firms from going private are incentive realignment, Free Cash Flow (mostly for Asia), the economy of cost transaction and undervaluation. Furthermore, taxation benefit is a source of wealth effects for Asia and Family blockholder (for the control hypothesis) is significant for Europe. Premiums and CAAR are the most important for the USA and Asia. The main observation that we have made, is that Asia gets the same behavior as the USA.Public to Private transactions, CAAR, Premium, wealth.

Motivations of Public to Private Transactions: an international study

This article deals with the motivations and the different sources of value from Public to Private Transactions in Europe, USA and Asia from 2000 to 2007. We determine eight main motivations (Tax savings, Incentive realignment, Control, Free Cash Flow, Growth of Prospects, Transaction Costs, Takeover Defence and Undervaluation). Then, we evaluate the shareholder wealth by measuring the offered premiums and the CAAR (Cumulative Average Abnormal Return). Finally we analyse the impact of Public to Private to the wealth shareholder. The main sources for firms from going private are incentive realignment, Free Cash Flow (mostly for Asia), the economy of cost transaction and undervaluation. Furthermore, taxation benefit is a source of wealth effects for Asia and Family blockholder (for the control hypothesis) is significant for Europe. Premiums and CAAR are the most important for the USA and Asia. The main observation that we have made, is that Asia gets the same behavior as the USA.Public to Private transactions, CAAR, Premium, wealth.

Les motivations et la performance des opérations de retrait de la cote: une revue

Cet article s'intéresse aux motivations et aux différentes sources de valeur liées à la création des opérations de Public to Private dites PtoP. Dans cette étude nous allons tout d'abord esquisser l'évolution récente de ces opérations. Ensuite nous énoncerons les différentes raisons du développement de plus en plus intensif des PtoP. Pour cela nous analyserons les différentes motivations puis nous en déduirons les différentes hypothèses. Pour chacune d'entre elles, une synthèse des principales études sera réalisée selon les auteurs, la période étudiée et selon la zone géographique retenue. Enfin, une méthode d'analyse à la fois des motivations et de la performance des PtoP a été réalisée selon différents angles d'approche.Public to Private, Retrait de cote, Performance, Gouvernance, Gestion des résultats, prime

Les motivations et la performance des opérations de retrait de la cote: une revue

Cet article s'intéresse aux motivations et aux différentes sources de valeur liées à la création des opérations de Public to Private dites PtoP. Dans cette étude nous allons tout d'abord esquisser l'évolution récente de ces opérations. Ensuite nous énoncerons les différentes raisons du développement de plus en plus intensif des PtoP. Pour cela nous analyserons les différentes motivations puis nous en déduirons les différentes hypothèses. Pour chacune d'entre elles, une synthèse des principales études sera réalisée selon les auteurs, la période étudiée et selon la zone géographique retenue. Enfin, une méthode d'analyse à la fois des motivations et de la performance des PtoP a été réalisée selon différents angles d'approche

Motivations Of Public To Private Transactions: An International Empirical Investigation

This article contributes to the financial literature by investigating the motivations of Public to Private transactions in an international perspective (Europe, USA and Asia). We consider seven main possible motivations: tax savings, incentive realignment, control, free cash-flow, growth of prospects, takeover defense and undervaluation. Our empirical findings suggest that low growth prospects, low liquidity and high free cash-flow are the three main motivations for a Public to Private transactions. However, regions show some particularities such as importance of family block-holders in Europe and importance of the level of taxation in Asia

Crowdfunding In France: A New Revolution?

In the last few years, small firms have had difficulties to finance their projects via the traditional bank system. A new type of financing has recently appeared in Europe and in particular in France: the crowdfunding. It is a method for funding a variety of new ventures, allowing individual founders of for-profit, cultural, or social projects to request funding from many individuals via Internet. Our paper contributes to the literature by introducing this financial innovation and building a theoretical framework to explain its success. We also discuss some more practical issues to enhance crowdfunding in France

Motivations and Performance of Public to Private operations : an international study

This article deals with the motivations and the different sources of value from Public to Private Transactions in Europe, USA and Asia from 2000 to 2007. We determine eight main motivations (Tax savings, Incentive realignment, Control, Free Cash Flow, Growth of Prospects, Transaction Costs, Takeover Defence and Undervaluation). Then, we evaluate the shareholder wealth by measuring the offered premiums and the CAAR (Cumulative Average Abnormal Return). Finally we analyse the impact of Public to Private to the wealth shareholder. The main sources for firms from going private are incentive realignment, Free Cash Flow (mostly for Asia), the economy of cost transaction and undervaluation. Furthermore, taxation benefit is a source of wealth effects for Asia and Family blockholder (for the control hypothesis) is significant for Europe. Premiums and CAAR are the most important for the USA and Asia. The main observation that we have made, is that Asia gets the same behavior as the USA

Motivations and Performance of Public to Private Transactions: an international study

This article deals with the motivations and the different sources of value from Public to Private Transactions in Europe, USA and Asia from 2000 to 2007. We determine eight main motivations (Tax savings, Incentive realignment, Control, Free Cash Flow, Growth of Prospects, Transaction Costs, Takeover Defence and Undervaluation). Then, we evaluate the shareholder wealth by measuring the offered premiums and the CAAR (Cumulative Average Abnormal Return). Finally we analyse the impact of Public to Private to the wealth shareholder. The main sources for firms from going private are incentive realignment, Free Cash Flow (mostly for Asia), the economy of cost transaction and undervaluation. Furthermore, taxation benefit is a source of wealth effects for Asia and Family blockholder (for the control hypothesis) is significant for Europe. Premiums and CAAR are the most important for the USA and Asia. The main observation that we have made, is that Asia gets the same behavior as the USA

The smart contract revolution

International audienc

Motivations et Conséquences des opérations de retrait de la cote: une étude internationale

Why such enthusiasm for Public to Private transactions in recent years ? This question led us to identify the motivations that encourage companies to leave the stock market and to evaluate the impact of such decisions on shareholders' wealth. Our research focuses on the period from 2000 to 2007 in different geographical areas: the United States, Europe and Asia. It is organized in two parts: The first part is devoted to the theoretical framework. An analysis of the implementation of these operations and their evolution over time are the subjects of Chapter 1. The literature review (Chapter 2) reveals the limits of the French and International researches on the subject, which encouraged us to develop this international analysis. Then, we formulated (Chapter 3) different hypotheses to test, and the methodology we would employ. The second part is reserved for empirical analysis based on the motivations of Public to Private transactions (Chapter 4). These are determined by a comparison between our study sample and a control sample consisting of listed companies. Both consist of 413 firms. The hypothesis of shareholders' wealth is measured by two indicators: the premium and the cumulative average abnormal return (Chapter 5). These represent the dependent variables of our model which examine the impact of Public to Private transactions to shareholders' wealth (Chapter 6). Our analysis confirms the significant role of tax savings, internal company control, weak growth prospects, and under-valuation both as determinants of companies' decisions to go private and as sources of wealth for shareholders.Pourquoi ce tel engouement pour les opérations de Public to Private au cours des dernières années ? Cette question nous a conduits à identifier d'une part les motivations qui incitent les sociétés à sortir de la bourse et à évaluer d'autre part l'impact qu'elles ont sur la richesse des actionnaires. Notre recherche porte sur la période 2000-2007 selon différentes zones géographiques : les Etats-Unis, l'Europe et l'Asie. Elle est organisée en deux parties. La première partie est consacrée au cadre théorique. Une analyse de la mise en place d'une telle opération et son évolution dans le temps font l'objet de notre chapitre 1. La revue de la littérature (chapitre 2) montre les limites de la recherche française et internationale en la matière, ce qui nous a encouragés à développer cette analyse internationale. Ensuite, nous avons formulé dans le chapitre 3, les différentes hypothèses à tester ainsi que la méthodologie employée. La deuxième partie est réservée aux analyses empiriques basées sur les motivations des opérations de Public to Private (chapitre 4). Ces dernières sont déterminées en faisant une comparaison entre l'échantillon de notre étude et un échantillon de contrôle dont ce dernier est constitué de sociétés cotées en bourse. Tous les deux comportent 413 firmes. L'évaluation de la richesse des actionnaires est mesurée par deux indicateurs : la prime et la rentabilité anormale moyenne cumulée (chapitre 5). Ces derniers représenteront les variables dépendantes de notre modèle étudiant l'impact des opérations de Public to Private sur la richesse des actionnaires (chapitre 6). Nos analyses confirment le rôle important de l'économie fiscale, du contrôle au sein de la société, des perspectives de croissance faibles, de la sous-évaluation comme déterminants des sociétés à sortir de la bourse et comme sources de richesse pour les actionnaires