Corporate governance and shareholder wealth gains in public-to-private transactions: Canadian evidence
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Date
2017
Authors
Gu, Yuewen
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Abstract
The thesis studies corporate governance and shareholder wealth gains in Canadian going private transactions. First, we survey empirical literature on corporate governance mechanisms and summarize new corporate governance measurements. Then we examine effects of corporate governance on firm performance and firm valuation. Finally, we make comparisons of governance among different countries and uncover their various features.
The second part of the study analyzes shareholder wealth gains from public-to-private (PTP) transactions in Canada from 1996 to 2014. We find that average premiums paid are lower than those found in U.S. and UK PTP transactions. The main sources of shareholder wealth gains in Canadian PTPs are high free cash flow and firm undervaluation.
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Keywords
Corporate governance, Public-to-private transactions