![Backing into being public: an exploratory analysis of reverse takeovers [An article from: Journal of Corporate Finance]](https://www.ebooknetworking.net/books/B00/0RR/bigB000RR5X76.jpg)
Backing into being public: an exploratory analysis of reverse takeovers [An article from: Journal of Corporate Finance]
Book Details
PublisherElsevier
ISBN / ASINB000RR5X76
ISBN-13978B000RR5X76
AvailabilityAvailable for download now
Sales Rank10,600,599
MarketplaceUnited States 🇺🇸
Description
This digital document is a journal article from Journal of Corporate Finance, published by Elsevier in . The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.
Description:
We examine 121 reverse takeovers (RT), in which a privately held firm acquires a publicly traded firm to obtain their exchange listing. The public firms, many of which went public during the initial public offering (IPO) bubble, are generally poor performers. Their shareholders receive significant wealth gains upon announcement, suggesting that these events may provide shareholders of distressed firms a way to recover some of their investment. We observe little post-event improvement in operations or profitability, and only 46% of the sample survives two years. Thus, while reverse takeovers provide alternative means of going public, they are risky and may fail to generate long-term wealth.
Description:
We examine 121 reverse takeovers (RT), in which a privately held firm acquires a publicly traded firm to obtain their exchange listing. The public firms, many of which went public during the initial public offering (IPO) bubble, are generally poor performers. Their shareholders receive significant wealth gains upon announcement, suggesting that these events may provide shareholders of distressed firms a way to recover some of their investment. We observe little post-event improvement in operations or profitability, and only 46% of the sample survives two years. Thus, while reverse takeovers provide alternative means of going public, they are risky and may fail to generate long-term wealth.
