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Title:Unternehmen im Prime Standard staying public oder going private? Nutzenanalyse der Börsennotiz PDF Logo
Authors:Schanz, Kay-Michael
Richard, Jörg
Schalast, Christoph
Issue Date:2004
Series/Report no.:Arbeitsberichte der Hochschule für Bankwirtschaft 60
Abstract:The dramatic drop in prices on the German stock exchange in the period from 2000 to 2003 was one cause for the rising number of delistings in Germany. This development triggered the study on the aptitude of listed companies to remain listed although the authors were well aware that a negative conclusion would not necessarily imply a company's realistic chance of going private, in particular of obtaining the required financing for such a transaction. The study focused on those companies of the Prime Standard that were not included in one of the indices. Using selected indicators, the authors analyzed the question if and to what extent each of the companies examined had reached the goals normally pursued for an IPO. It was concluded that for the overwhelming majority of those companies studied, a listing on a stock exchange would not make sense (any more): in particular, due to the volume of their market capitalization and the liquidity of their stock, they wouldn't interest the analysts and investors nor would their stock prices adequately reflect their intrinsic values. And, especially during these difficult times, it would be very hard to raise additional capital on the markets.
Subjects:Delisting
going private
market capitalisation
IPO
stock exchange
liquidity
capital raising
stock price
JEL:G24
K20
K22
L2
Persistent Identifier of the first edition:urn:nbn:de:101:1-2008082597
Document Type:Working Paper
Appears in Collections:Frankfurt School - Working Paper Series, Frankfurt School of Finance and Management

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