Concentration of family-based ownership and recent development of private equity companies in Continental Europe suggest that the motivations and results of public-to-private (PTP) deals may differ from well-studied cases in the United States and United Kingdom. We overview the PTP market and measure the cumulative abnormal returns (CARs) of 106 PTP deals concluded in Continental Europe from 2000 to 2005, introducing a model to explain the abnormal returns. Our results partially confirm findings of previous studies, namely, that undervalued and smaller firms register higher CARs. We additionally find that deals promoted by family owners register higher abnormal returns, whereas financial investors and private operating firms show no impact.

Equity markets do not fit all: an analysis of public-to-private deals in Continental Europe

GERANIO, MANUELA;ZANOTTI, GIOVANNA
2012

Abstract

Concentration of family-based ownership and recent development of private equity companies in Continental Europe suggest that the motivations and results of public-to-private (PTP) deals may differ from well-studied cases in the United States and United Kingdom. We overview the PTP market and measure the cumulative abnormal returns (CARs) of 106 PTP deals concluded in Continental Europe from 2000 to 2005, introducing a model to explain the abnormal returns. Our results partially confirm findings of previous studies, namely, that undervalued and smaller firms register higher CARs. We additionally find that deals promoted by family owners register higher abnormal returns, whereas financial investors and private operating firms show no impact.
Geranio, Manuela; Zanotti, Giovanna
File in questo prodotto:
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11565/3717103
 Attenzione

Attenzione! I dati visualizzati non sono stati sottoposti a validazione da parte dell'ateneo

Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 14
  • ???jsp.display-item.citation.isi??? 9
social impact