Equity discount premium between public and private companies in the Eurozone
- Álvarez Plaza, Jaime
- Herrera, Paula
ISSN: 0210-2358
Year of publication: 2012
Issue: 120
Pages: 33-47
Type: Article
More publications in: Análisis Financiero
Sustainable development goals
infoSDG classification obtained using Aurora SDG artificial intelligence model.
Abstract
Non-listed firms analyzed by investors show poor firm marketability and financial information. Due to these factors, there is a higher perceived risk and, as a consequence, the private-held firms are sold at a discount over similar listed firms and over firms that generate acceptable levels of financial information within the Euro area. This paper concludes that the discount on privately-own companies across industries is economically reasonable and statistically significant