FACTORS INFLUENCING THE GOING PRIVATE DECISION - A HAZARD MODEL APPROACH

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Abstract

The aim of this paper is to characterize companies which voluntarily changed their ownership from public to private. The research question addressed in this paper is, if it is possible to characterize going private companies in earlier stages than just shortly before the announcement of their step into privacy. I therefore examine going private companies in a lifecycle context with Cox hazard model and conduct additional logistic regressions at the time of the IPO and shortly before delisting. Further, I not only focus on companies’ fundamentals, but also on perceptibility and corporate governance variables. With data of 1’184 US IPOs from 1990 to 2013, my results show that both, perceptibility and corporate governance variables accelerate the going private decision.

Keywords: Going Private, Voluntary Delisting, Corporate Lifecycle

How to cite this paper: Ehn, L. (2016). Factors influencing the going private decision - a Hazard model approach. Corporate Ownership & Control, 13(2-3), 532-545. https://doi.org/10.22495/cocv13i2c3p4