Characteristics of Firms Going Private in the Malaysian Stock Exchange
AbstractThe study empirically investigates the financial characteristics that discriminate firms that went private and firms that remain publicly traded. Based on the results of logit and probit model, companies that reverted to the private domain are characterized as having higher cash balance, higher degree of undervaluation, higher operating profit margin, lower dividend payout rate, and lower free float compared to public counterparts. The classification accuracy rates for in-sample and holdout sample are 69.17% and 65.38% respectively.
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 30 (2010)
Issue (Month): 2 ()
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Going Private; Public-to-Private Transaction; Stock Market; Target Prediction; Firm Characteristics;
Find related papers by JEL classification:
- G3 - Financial Economics - - Corporate Finance and Governance
- G1 - Financial Economics - - General Financial Markets
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