13 research outputs found

    An Investigation of the Motives in Going-Private Transactions: The Case of Re-LBOs.

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    The commonly understood and traditional forms of termination for a public firm are the takeover and bankruptcy. Going private is a new and interesting third alternative. Once the going public option--a significant number of observed reverse leveraged buyout (LBO) cases--is taken into account, however, the fundamental difference between this new alternative and traditional ways becomes apparent. Even more fascinating than the public-to-private private-to-public move is the fact that some companies go private again. This dissertation examines the phenomenon of re-LBOs; that is, the practice of going private via management buyout, then reobtaining public status through a new initial public offering, and then going private a second time. The dissertation encompasses various dimensions that should, in addition to explaining re-LBOs, provide new evidence for existing theories of going-private transactions. First, the dissertation investigates the applicability of the leading theoretical and empirical issues of LBOS to a re-LBO sample, thus providing a comparative analysis of LBOs and re-LBOs. Specifically, it challenges the free cash flow argument of LBOS by replicating the Lehn and Poulsen (1989) study of going-private transactions with the re-LBO sample. Second, the dissertation proposes an information asymmetry hypothesis to going-private transactions. This part of the dissertation reports the results of a survey of the views of management in 600 LBOS. The results of the survey are substantiated by tests of a set of hypotheses that exploit either reverse LBO or re-LBO samples to provide additional statistical evidence on the information asymmetry issue. Although reverse LBOs have been examined in the finance literature to some degree, the use of re-LBO firms to study management buyouts is original

    A comparative analysis of perception of dividends by financial managers

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    This paper is a report about the perception of dividends by Chief financial officers (CFOs). The research encompasses five countries, on three continents, and covers three types of economies. Our cross-sectional study is concerned with both inter- and intra-societal differences that may or may not exist regarding the perception of dividends by those who are in charge of making such decisions in the firm. Using a survey instrument, we find that both similarities and dissimilarities exist inter- and intra-culturally. Perhaps the most important conclusion we reach is that dividend research must take a different track than it has been following so far

    Repeated LBOs: the case of multiple LBO transactions

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    Firms that undergo a second LBO transaction are unique because they have a second experience in the capital markets after being privately held. Motivations for repeated LBOs may differ from first-time LBOs - because of the past experience, the market may be able to better distinguish the competing motivations that have been suggested in the literature. We find that for repeated LBOs, the market response is more strongly positive than that typically found for first-time LBOs. The market reaction is also strongly related to a variant of Tobin' Q, implying that the timing of the LBO may coincide with a low perception in market value. It is not surprising that the majority of the repeated LBOs were performed following the 1987 stock market crash. It appears that the instigators of the LBO believed the price was undervalued and their experience let them act accordingly

    ─░stanbul menkul k─▒ymetler borsas─▒ ┼čirketlerinin ┼čeffafl─▒k ve kamuyu bilgilendirme bak─▒m─▒ndan derecelendirilmesi

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    AtlantikÔÇÖin her iki yakas─▒nda ya┼čanan finansal raporlama ve denetim skandallar─▒, bircok ├╝lkede kanun ve standartlar─▒n en iyi kurumsal yonetim (KY) uygulamalar─▒n─▒ kapsayacak ┼čekilde de─či┼čmesine sebep olmu┼čtur. Geli┼čmi┼č ├╝lkelerde bir├žok firma da, akademik ├žal─▒┼čmalarda y├╝ksek KY standartlar─▒ ─▒le y├╝ksek firma performans─▒n─▒n ba─člant─▒l─▒ oldu─čunun bulunmas─▒ nedeniyle, hem yat─▒r─▒mc─▒lara kalitelerini g├Âstermek hem de KY uygulamalar─▒n─▒ geli┼čtirmek i├žin g├Ân├╝ll├╝ olarak KY uygulamalar─▒n─▒ derecelendiren kurumlar─▒n hizmetlerinden yararlanmaya ba┼člam─▒┼člard─▒r. Literat├╝rde KY kalitesinin ├Ânde gelen g├Âstergelerinden biri firmalar─▒n ┼čeffafl─▒k ve kamuyu bilgilendirme (┼×&B) uygulamalar─▒ olmu┼čtur. ┼×&B, finansal tablolar─▒n, m├╝lkiyet yap─▒s─▒n─▒n ve genel kurul&y├Ânetim yap─▒ ve i┼čleyi┼činin kamuya a├ž─▒klanmas─▒nda ÔÇśeksiksiz if┼čaatÔÇÖ ve ÔÇś┼čeffafl─▒kÔÇÖ ve ÔÇśayd─▒nlat─▒c─▒l─▒kÔÇÖ prensiplerine uyum olarak tarif edilebilir. Biz de bu ├žal─▒┼čmada Standard & PoorÔÇÖs (S&P) ile i┼čbirli─či yaparak, ─░stanbul Menkul K─▒ymetler Borsas─▒nda (─░MKB) i┼člem g├Âren en b├╝y├╝k ve en likit 52 firmay─▒, y─▒ll─▒k finansal raporlar─▒nda ve web sitelerinde kamuya a├ž─▒klanan b─▒lgilere bakarak de─čerlendirdik. Bu kaynaklarda, ├╝├ž ana kategoriden olu┼čan (m├╝lkiyet yap─▒s─▒ ve yat─▒r─▒mc─▒ ili┼čkileri, finansal ┼čeffafl─▒k ve bilgi if┼čas─▒, genel kurul/y├Ânetim yap─▒s─▒ ve i┼čleyi┼či) ve en iyi ┼×&B ilkelerine uygun 106 niteli─čin bulunup bulunmad─č─▒n─▒ ├Âl├žt├╝k. Bu 106 nitelik, S&PÔÇÖnin baz─▒ ba┼čka ├╝lkelerdeki ┼×&B ├žal─▒┼čmalar─▒nda kullandu─č─▒ 98 soruya T├╝rkiyeÔÇÖnin d├╝zenleyici ortam─▒na ve T├╝rk Sermaye Piyasas─▒ KurumuÔÇÖnun yeni KY ├Ânerilerine g├Âre uyarlanm─▒┼č baz─▒ sorular─▒n eklenmesi ile geli┼čtirilmi┼čtir. ├çal─▒┼čmam─▒z ayr─▒ca bu 52 firman─▒n ┼×&B notlar─▒ ile finansal performanslar─▒ aras─▒ndaki ili┼čkiyi de de─čerlendirerek di─čer baz─▒ ├╝lkelerde g├Âr├╝len bu ili┼čkinin ─░MKB ┼čirketleri i├žin de ge├žerli olup olmad─▒─č─▒n─▒ test ederek, firmalara KY/ ┼×&B prensiplerine uyum i├žin motivasyon sa─člamay─▒ da ama├žlamaktad─▒r. Bu ├žal─▒┼čma ─░MKB firmalar─▒n─▒n kamuyu bilgilendirme ve ┼čeffafl─▒k uygulamalar─▒n─▒n ilk objektif derecelendirilmesidir. Ayr─▒ca, kullan─▒lan metodoloji ve sorular─▒n Standard & PoorÔÇÖs (S&P) taraf─▒ndan ba┼čka ├╝lkelerde kullan─▒lanlarla uyumlu olmas─▒, bu ├Ânceki ├žal─▒┼čmalar─▒n sonu├žlar─▒ ile kar┼č─▒la┼čt─▒rmay─▒ m├╝mk├╝n k─▒lmaktad─▒r. Bu evrensel derecelendirmelerin bir amac─▒ da, t├╝m firma payda┼člar─▒n─▒n firmalar ve piyasalar aras─▒ndaki raporlama kalitesi ve dolay─▒s─▒yla yat─▒r─▒m riskleri farkl─▒l─▒klar─▒n─▒ tespit etmelerine yard─▒mc─▒ olmakt─▒r. Son olarak, ┼×&B derecelendirmeleri yerel ve uluslararas─▒ d├╝zenleyici kurumlar i├žin ├Ânemli bir kontrol (monitoring) arac─▒ te┼čkil etmektedir

    Is it Free Cash Flow, Tax Savings, or Neither?An Empirical Confirmation of Two Leading Going-private Explanations:The Case of ReLBOs

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    Firms which 'go private' via a leveraged buyout (LBO) retain the option to 'go public' again, a process known as a reverse LBO transaction. This paper examines the rarer phenomenon of reLBOs; that is, the practice of going private via leveraged buyout, reobtaining public status through a new initial public offering, and then going private a second time. Among the several alternative hypotheses explaining LBOs, we focus on two prominent ones - free cash flow and tax savings - to explain reLBOs. With a sample of 21 reLBO firms, we find no empirical support for the free cash flow hypothesis but detect a significant relationship between the decision to go private for the second time and the tax savings potential of the firm. Copyright Blackwell Publishers Ltd 2002.

    Exploratory analyses of dividend reinvestment plans and some comparisons

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    In this paper, we explore salient features of dividend reinvestment plans (DRIPs), analyze their financial peculiarities and search for the differences between firms that offer DRIPs and those that do not. As more than 1200 firms currently offer the plan, an understanding of why these plans differ in a variety of cost/benefit structures and, perhaps more importantly, what separates these firms from No-DRIP firms is crucial for both investors and adaptors of the plan. Our research suggests thatÔÇöout of 17 financial and accounting variablesÔÇöDRIP firms differ from No-DRIP firms in only three variables. In spite of this, we conclude that there is much to learn about the motivation for DRIPs