Does A Company's “Going Private” Tend to Harm Its Stakeholders? A Contingency-Based Approach to Stakeholder Effects

The migration of publicly-held companies to private status through use of private equity has been both lauded and lambasted. While agency theorists praise the public-to-private or PTP firm as being an efficient form of corporate governance, others suggest that going private allows owners and managers to extract, rather than add, value.We contribute by developing a categorization of the potential sources of value for the PTP firm. We analyze the effects of each source of value, and find that there are specific negative effects for non-equity stakeholders associated with several sources. Our analysis indicates that the degree to which value is added versus extracted will vary across firms; yet, all will tend to engage in some value extraction. Policy implications are discussed
Keywords Business and Professional Ethics  Conference Proceedings  Social Science
Categories (categorize this paper)
ISBN(s) 2155-2568
 Save to my reading list
Follow the author(s)
My bibliography
Export citation
Find it on Scholar
Edit this record
Mark as duplicate
Revision history Request removal from index
Download options
PhilPapers Archive

Upload a copy of this paper     Check publisher's policy on self-archival     Papers currently archived: 24,442
External links
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
Through your library
References found in this work BETA

No references found.

Add more references

Citations of this work BETA

No citations found.

Add more citations

Similar books and articles
Antonio Argandoña (2003). Private-to-Private Corruption. Journal of Business Ethics 47 (3):253 - 267.
Dominic Kaeslin (2007). Structure and Agency in Firm-Stakeholder Networks. Proceedings of the International Association for Business and Society 18:443-447.

Monthly downloads

Added to index


Total downloads

8 ( #467,798 of 1,925,097 )

Recent downloads (6 months)

1 ( #418,130 of 1,925,097 )

How can I increase my downloads?

My notes
Sign in to use this feature

Start a new thread
There  are no threads in this forum
Nothing in this forum yet.