Download now Free registration required
Several theories have been proposed to explain the flow from public to private equity ownership. By studying the propensity of individual firms to become private during the previous few decades, the authors attempt to distinguish between the various theories. Firm size, risk, valuation, growth, and profitability all predict the decision to go private, consistent with many plausible theories. They find support for several specific explanations of buyout volumes, including the importance of junk bonds, the supply of private equity, the impact of Sarbanes-Oxley, and the risk sharing benefits of public ownership.
- Format: PDF
- Size: 163.23 KB