Market liquidity, investor participation, and managerial autonomy: Why do firms go private?

• 成果类型: Article
• 署名作者: Boot, Arnoud W. A.; Gopalan, Radhakrishnan; Thakor, Anjan V.
• 署名单位: University of Amsterdam; Washington University (WUSTL)
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/j.1540-6261.2008.01380.x
• 发表日期: 2008
• 页码: 2013-2059
• 关键词: CORPORATE-OWNERSHIP STRUCTURE; initial public offerings; empirical-analysis; large shareholders; stock-market; AGENCY COSTS; CONTRACTS; DECISION; entrepreneurs; experience

摘要

We focus on public-market investor participation to analyze the firm's decision to stay public or go private. The liquidity of public ownership is both a blessing and a curse: It lowers the cost of capital, but also introduces volatility in a firm's shareholder base, exposing management to uncertainty regarding shareholder intervention in management decisions, thereby affecting the manager's perceived decision-making autonomy and curtailing managerial inputs. We extract predictions about how investor participation affects stock price level and volatility and the public firm's incentives to go private, providing a link between investor participation and firm participation in public markets.