The firm lifecycle as a determinant of going private decisions
Journal
Conference Proceeding
Type
conference contribution
Date Issued
2016-07-26
Author(s)
Abstract (De)
We examine the impact of corporate lifecycle on the likelihood of becoming a voluntary going private firm. We apply the firm’s capital mix as a measure for the stage in a firm’s lifecycle. In doing so, we provide a framework and evidence on firm characteristics of going private firms. We find that the decision to go private depends on the firm’s lifecycle. Young firms, with low retained earnings are more likely to go private than mature or old firms. We also find that relative firm characteristics of going private and non-going private firms are consistent with the findings on relative firm characteristics in M & A activity research for acquirers (bidders, non-targets) vs. non-acquirer (non-bidders, and targets) and that these relative firm characteristics of going private and non-going private firms stay constant throughout all stages of the corporate lifecycle.
Language
English
HSG Classification
contribution to scientific community
Refereed
Yes
Start page
1
End page
32
Pages
32
Event Title
International Conference on Asia-Pacific Economic & Financial Development
Event Location
Ho Chi Minh City
Event Date
24.-26.07.2016
Subject(s)
Eprints ID
249166