Undervaluation, private information, agency costs and the decision to go private.
(2005)
Journal Article
WEIR, C., LAING, D. and WRIGHT, M. 2005. Undervaluation, private information, agency costs and the decision to go private. Applied financial economics [online], 15(13), pages 947-961. Available from: https://doi.org/10.1080/09603100500278221
There is widespread anecdotal evidence that poor stock market performance is an important reason for taking a company private. The results support the perceived undervaluation hypothesis. The finding also applies to management buy-outs, which indicat... Read More about Undervaluation, private information, agency costs and the decision to go private..