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Cited by 873

The DOI matches its Crossref record; 26 of the 26 references it cites were found in a registry or an index.

Insider Ownership and the Decision to Go Public

Zingales, Luigi·1995·The Review of Economic Studies
DOI 10.2307/2298036
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Abstract

This paper focuses on the role of an initial public offering (IPO) in maximizing the proceeds an initial owner obtains in selling his company. In deciding whether to undertake an IPO, and what fraction of ownership to retain, the initial owner must balance two factors. By selling to dispersed shareholders, he maximizes his proceeds from the sale of cash flow rights. However, by directly bargaining with a potential buyer, he maximizes his proceeds from the sale of control rights. Whether a company should be private or public, as well as the insider's ownership in public companies, depends on the particular combination of majority control and dispersed ownership which maximizes the incumbent's wealth. The model provides implications on the strategy to be followed in selling a company as well as on the timing of IPOs and going-private transactions.

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Cites

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Metadata

Authors
Zingales, L.
Venue
The Review of Economic Studies
Publisher
Oxford University Press (OUP)
Published
1995-07
Volume
62
Issue
3
Pages
425
ISSN
0034-6527 (ISSN-L)
DOI
10.2307/2298036
OpenAlex
W2053074030
Cited by
873
References
26
FWCI
71.22
Type
journal article
Language
en
Open access
closed

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CoChat. (2026). Citation check: Insider Ownership and the Decision to Go Public. https://app.cochat.ai/papers/10.2307/2298036
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Zingales, L. (1995). Insider Ownership and the Decision to Go Public. The Review of Economic Studies. https://doi.org/10.2307/2298036

Data sources

Bibliographic data: Semantic Scholar, OpenAlex, Crossref.

Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.