From public to private

Article Abstract:

Many UK firms are taking their firms private through leveraged buyouts due to either disenchantment with the valuation of their firm's shares by the UK financial industry or in order to affect a reconstruction of the firm's finances by replacing equity with different forms of debt. Leveraged buyouts due to disenchantment with the financial markets arise when management believes that the firm has been undervalued due to a misunderstanding. Reconstructions of a firm's finances are also predicated upon management's view that the financial markets have failed to recognize the true value of the firm. Taking a firm private is fraught with potential dangers and considerable costs and are not always successful, necessitating that a management group considering such a move should analyze the potential financial burden involved.

Analysis, Going private (Securities)

---

Short-termism: the wrong diagnosis

Article Abstract:

The capital market in Great Britain is often criticized for overemphasizing short-term returns when valuing stock share prices, all at the expense of long-term development. The real problem is the shareholders' lack of commitment to the companies that they own. This problem is built into Great Britain's financial system. The majority of corporate shares are held by institutional fund managers who are under heavy pressure to show high profits. Countries in which there is a great deal of shareholder commitment, such as Germany and Japan, are characterized by systems in which the banks are the major providers of risk capital, and maintain close ties with corporate managements. British companies can improve shareholder commitment by divulging more information about the quality of their profits.

Economic aspects, Institutional investments, Great Britain

---

Similar abstracts:

• Abstracts: Profits fail to sparkle. Semiconductors: bitter memories. ARM
• Abstracts: Space audits come to the city. Interpreters to the world of finance. Worth more than the paper it's printed on
• Abstracts: Keeping your income healthy. Private care at a premium. Private health plans suffer as costs soar
• Abstracts: The tax effect of capital contributions. Asset finance: a real choice

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.