search query: @author Lefanowicz, C. E. / total: 2
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| Author: | Graham, R. C. Jr. Lefanowicz, C. E. |
| Title: | Majority and minority ownership of publicly-traded firms: A test of the value of control using market multiples |
| Journal: | Journal of Business Finance and Accounting
1999 : JAN/MAR, VOL. 26:1-2, p. 171-198 |
| Index terms: | Stock markets Subsidiary companies Valuation Stock ownership Securities USA |
| Language: | eng |
| Abstract: | Publicly-traded companies that are controlled by other publicly-traded companies provide a unique setting in which to test if the market values of majority and minority ownership interests are proportionate to their ownership percentages. It is indicated by test results that the value of subsidiary net assets and net income are greater to majority shareholders than to minority shareholders. However, comparison of asset and income valuation with a sample of diffusely-held firms indicates that this valuation asymmetry is not due to a wealth transfer from the minority to the majority owners but to discounting of the portion of the subsidiary owned by the minority shareholders. |
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