The hidden costs of being public: Evidence from multinational firms operating in an emerging market

• 成果类型: Article
• 署名作者: Slutzky, Pablo
• 署名单位: University System of Maryland; University of Maryland College Park
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2020.08.001
• 发表日期: 2021
• 页码: 606-626
• 关键词: Mergers and acquisitions; Stock market listing; Ownership structure

摘要

I study how firms deal with business regulations that limit their operations. I first show that the ownership structure of a firm affects its degree of compliance with regulations, with publicly listed firms complying more than privately held ones. This differential compliance imposes a burden on listed firms that helps explain mergers and acquisitions patterns. When regulatory levels increase, private firms acquire listed ones and listed firms stop acquiring private ones. These results uncover an additional cost faced by listed companies, identify a new driver of M&A transactions, and show that high levels of regulation lead to opaque corporate structures. (C) 2020 Elsevier B.V. All rights reserved.