Abstract
Because going public significantly changes bidder managerial ownership (a proxy for agency problems) but not the corporate control market in which private equity (PE) firms operate, if agency problems causally drive takeover premiums as hypothesized by Bargeron et al. (2008), deal premiums should significantly increase after PE acquirers go public. We test this prediction, and find that deal premiums are not significantly higher after PE acquirers go public. Our finding thus is inconsistent with the agency-problem hypothesis.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
