Journal of the Knowledge Economy ( IF 1.815 ) Pub Date : 2021-06-17 , DOI: 10.1007/s13132-021-00806-w Domitilla Magni , Ottorino Morresi , Alberto Pezzi , Domenico Graziano
One of the reasons why a firm chooses to go private is the significant amount of cash flows which can exacerbate agency costs: this can indicate poor growth opportunities and make external resources less required. In line with both knowledge economy and financial literature, the paper aims to indagate the relationship between agency costs, firm’s performance, and delisting. Despite there is evidence in finance that highlights the role of exchange regulators in the going private processes, just few studies focus on the voluntary delisting and its antecedents. Starting from the knowledge economy setting, this paper aims to define how firm’s financial performance moderates the relationship between agency costs and delisting choices. Based on a sample of non-financial firms delisted from the most important European stock markets between 1997 and 2017, we applied an OLS regression to analyze the main variables that influence the going private processes. We find that a high level of stock market performance, associated with high level of free cash flows, promotes going private as a means of anticipating and preventing future value decreases. Finally, the paper provides practical implications for the development of new approach of delisting choice.
中文翻译:
界定公司业绩与退市的关系:欧洲私有化的经验证据
公司选择私有化的原因之一是大量现金流,这会加剧代理成本:这可能表明增长机会不佳并减少对外部资源的需求。根据知识经济和金融文献,本文旨在阐明代理成本、公司业绩和退市之间的关系。尽管有金融证据强调交易所监管机构在私有化过程中的作用,但很少有研究关注自愿退市及其前因。从知识经济背景出发,本文旨在定义公司的财务业绩如何调节代理成本与退市选择之间的关系。基于 1997 年至 2017 年间从最重要的欧洲股票市场退市的非金融公司样本,我们应用 OLS 回归来分析影响私有化进程的主要变量。我们发现,高水平的股票市场表现与高水平的自由现金流相关,促进私有化,作为预测和防止未来价值下降的一种手段。最后,本文为制定退市选择新方法提供了实践启示。