Private Firm Discount: Privately Held Companies Outperform Public Targets in Acquisitions.
The article explores the impact of mergers and acquisitions on companies in Scandinavia. It looks at how acquiring public versus private companies affects stock prices. The researchers used statistical analysis to study abnormal returns and factors like company size and deal size. They found that acquiring private companies tends to result in better returns than acquiring public companies. Additionally, larger companies generally perform better in acquisitions, while deal size and premium have a negative impact on acquisitions of public companies.