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Cited by 250Corporate Finance and GovernancePrivate Equity and Venture CapitalFinancial Markets and Investment Strategies

The DOI matches its Crossref record; 68 of the 71 references it cites were found in a registry or an index, and 3 are not checked yet.

Why Do Firms Use Private Equity to Opt Out of Public Markets?

Bharath, Sreedhar T., Dittmar, Amy K.·2010·Review of Financial Studies
DOI 10.1093/rfs/hhq016
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Abstract

We investigate how firms weigh the costs and benefits of being public in the decision to opt out of the public market and go private. We draw on previous studies of going private and on the subsequent well-developed theoretical literature on why firms go public to develop our hypotheses. We employ a comprehensive sample of going-private transactions from 1980 to 2004 in the United States and examine how these firms differ over their public life (from IPO to going private) relative to a sample of firms that went and remained public. Our results provide strong support for the importance of information and liquidity considerations in being a public firm. These factors are evident at the IPO, on average thirteen years before the going-private decision. Access to capital and control considerations become increasingly important in the choice of going private over the public life of the firm.

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Crossref · 10.1093/rfs/hhq016

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Research works printed but not linked: 8

  1. Borden A. Yunis J. Going Private. New York, NY: Law Journal Press; 2007.
  2. DeAngelo, H., L. DeAngelo, and E. Rice. 1984a. Going Private: The Effects of a Change in Corporate Ownership Structure. Midland Corporate Finance Journal (Summer):35–43.
  3. 10.2307/2328773 · DOI
  4. Koenig, 2004, Survey: A Brief Roadmap to Going Private, Columbia Business Law Review, 2004, 505
  5. 10.2307/2328782 · DOI
  6. 10.1093/rfs/7.2.253 · DOI
  7. 10.2307/2328321 · DOI
  8. 10.2307/2328871 · DOI

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Metadata

Authors
Bharath, S. T., & Dittmar, A. K.
Affiliations
University of Michigan (US)
Venue
Review of Financial Studies
Publisher
Oxford University Press (OUP)
Published
2010-03-23
Volume
23
Issue
5
Pages
1771-1818
ISSN
  • 0893-9454 (ISSN-L)
  • 1465-7368
DOI
10.1093/rfs/hhq016
OpenAlex
W2142756864
Cited by
247
References
70
Citations by year
2026: 13 · 2025: 20 · 2024: 9 · 2023: 9 · 2022: 15 · 2021: 14 · 2020: 14 · 2019: 15 · 2018: 21 · 2017: 17 · 2016: 19 · 2015: 16 · 2014: 10 · 2013: 17 · 2012: 15
FWCI
50.38
Type
journal article
Language
en
Open access
closed
Locations
  • Review of Financial Studies (publishedVersion)
  • RePEc: Research Papers in Economics (submittedVersion)
Topics
  • Social Sciences › Economics, Econometrics and Finance › Finance › Corporate Finance and Governance
  • Social Sciences › Economics, Econometrics and Finance › Finance › Private Equity and Venture Capital
  • Social Sciences › Economics, Econometrics and Finance › Finance › Financial Markets and Investment Strategies
Keywords
going private, private equity, going-private transactions, initial public offerings, firm liquidity, information costs, access to capital, corporate control

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