The Experts below are selected from a list of 324 Experts worldwide ranked by ideXlab platform
Andrei Shleifer - One of the best experts on this subject based on the ideXlab platform.
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State versus Private Ownership
The Journal of Economic Perspectives, 1998Co-Authors: Andrei ShleiferAbstract:Private Ownership should generally be preferred to public Ownership when the incentives to innovate and to contain costs must be strong. In essence, this is the case for capitalism over socialism, explaining the dynamic vitality' of free enterprise. The great economists of the 1930s and 1940s failed to see the dangers of socialism in part because they focused on the role of prices under socialism and capitalism and ignored the enormous importance of Ownership as the source of capitalist incentives to innovate. Moreover, many of the concerns that Private firms fail to address social goals' can be addressed through government contacting and regulation without resort to government Ownership. The case for Private provision only becomes stronger when competition between suppliers, reputational mechanisms, and the possibility of provision by Private not-for-profit firms, as well as political patronage and corruption, are brought into play.
Hanna Lee - One of the best experts on this subject based on the ideXlab platform.
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Private Ownership and the cost of public debt evidence from the bond market
Management Science, 2019Co-Authors: Brad A Badertscher, Dan Givoly, Sharon P Katz, Hanna LeeAbstract:A number of studies have examined the effect of public and Private Ownership on the cost of debt and concluded that the cost of debt of Privately owned firms is higher, driven mainly by the poorer information environment in which these firms operate. We extend this strand of research in two ways. First, we identify and empirically establish the mechanisms that bring about a higher cost of debt to Privately owned firms—namely, the limited access that these firms have to the equity capital market, their high rate of management and Private-equity Ownership, and their less conservative reporting. Second, we improve the reliability of the estimates of the effect of Ownership type on the cost of debt by controlling for the different information environments in which Privately and publicly owned firms operate. This is accomplished through the use of a sample consisting of publicly owned and Privately owned firms that have public debt and are therefore subject to identical reporting and disclosure requirements. C...
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Private Ownership and the cost of public debt evidence from the bond market
2015Co-Authors: Brad A Badertscher, Dan Givoly, Sharon P Katz, Hanna LeeAbstract:Using a sample of public bonds issued by Privately-owned and publicly-owned companies we find that, after controlling for financial fundamentals, bond characteristics, and information environment effects, the cost of public debt issued by Privately-owned companies as captured by ratings and yield spreads is significantly higher than that issued by publicly-owned companies. This higher cost is justified, but only in part, by higher than expected actual rates of default among Privately-owned firms. Among Privately-owned companies, the cost of debt is higher for companies controlled by Private equity (PE) firms. However, Ownership by large PE firm reduces the cost of debt to their investees as compared to those owned by smaller PE firms. The results contribute to our understanding of the costs of public versus Private Ownership and our knowledge on the role of Ownership type and “soft” information in bond valuation.
Brad A Badertscher - One of the best experts on this subject based on the ideXlab platform.
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Private Ownership and the cost of public debt evidence from the bond market
Management Science, 2019Co-Authors: Brad A Badertscher, Dan Givoly, Sharon P Katz, Hanna LeeAbstract:A number of studies have examined the effect of public and Private Ownership on the cost of debt and concluded that the cost of debt of Privately owned firms is higher, driven mainly by the poorer information environment in which these firms operate. We extend this strand of research in two ways. First, we identify and empirically establish the mechanisms that bring about a higher cost of debt to Privately owned firms—namely, the limited access that these firms have to the equity capital market, their high rate of management and Private-equity Ownership, and their less conservative reporting. Second, we improve the reliability of the estimates of the effect of Ownership type on the cost of debt by controlling for the different information environments in which Privately and publicly owned firms operate. This is accomplished through the use of a sample consisting of publicly owned and Privately owned firms that have public debt and are therefore subject to identical reporting and disclosure requirements. C...
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Private Ownership and the cost of public debt evidence from the bond market
2015Co-Authors: Brad A Badertscher, Dan Givoly, Sharon P Katz, Hanna LeeAbstract:Using a sample of public bonds issued by Privately-owned and publicly-owned companies we find that, after controlling for financial fundamentals, bond characteristics, and information environment effects, the cost of public debt issued by Privately-owned companies as captured by ratings and yield spreads is significantly higher than that issued by publicly-owned companies. This higher cost is justified, but only in part, by higher than expected actual rates of default among Privately-owned firms. Among Privately-owned companies, the cost of debt is higher for companies controlled by Private equity (PE) firms. However, Ownership by large PE firm reduces the cost of debt to their investees as compared to those owned by smaller PE firms. The results contribute to our understanding of the costs of public versus Private Ownership and our knowledge on the role of Ownership type and “soft” information in bond valuation.
Dan Givoly - One of the best experts on this subject based on the ideXlab platform.
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Private Ownership and the cost of public debt evidence from the bond market
Management Science, 2019Co-Authors: Brad A Badertscher, Dan Givoly, Sharon P Katz, Hanna LeeAbstract:A number of studies have examined the effect of public and Private Ownership on the cost of debt and concluded that the cost of debt of Privately owned firms is higher, driven mainly by the poorer information environment in which these firms operate. We extend this strand of research in two ways. First, we identify and empirically establish the mechanisms that bring about a higher cost of debt to Privately owned firms—namely, the limited access that these firms have to the equity capital market, their high rate of management and Private-equity Ownership, and their less conservative reporting. Second, we improve the reliability of the estimates of the effect of Ownership type on the cost of debt by controlling for the different information environments in which Privately and publicly owned firms operate. This is accomplished through the use of a sample consisting of publicly owned and Privately owned firms that have public debt and are therefore subject to identical reporting and disclosure requirements. C...
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Private Ownership and the cost of public debt evidence from the bond market
2015Co-Authors: Brad A Badertscher, Dan Givoly, Sharon P Katz, Hanna LeeAbstract:Using a sample of public bonds issued by Privately-owned and publicly-owned companies we find that, after controlling for financial fundamentals, bond characteristics, and information environment effects, the cost of public debt issued by Privately-owned companies as captured by ratings and yield spreads is significantly higher than that issued by publicly-owned companies. This higher cost is justified, but only in part, by higher than expected actual rates of default among Privately-owned firms. Among Privately-owned companies, the cost of debt is higher for companies controlled by Private equity (PE) firms. However, Ownership by large PE firm reduces the cost of debt to their investees as compared to those owned by smaller PE firms. The results contribute to our understanding of the costs of public versus Private Ownership and our knowledge on the role of Ownership type and “soft” information in bond valuation.
Sharon P Katz - One of the best experts on this subject based on the ideXlab platform.
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Private Ownership and the cost of public debt evidence from the bond market
Management Science, 2019Co-Authors: Brad A Badertscher, Dan Givoly, Sharon P Katz, Hanna LeeAbstract:A number of studies have examined the effect of public and Private Ownership on the cost of debt and concluded that the cost of debt of Privately owned firms is higher, driven mainly by the poorer information environment in which these firms operate. We extend this strand of research in two ways. First, we identify and empirically establish the mechanisms that bring about a higher cost of debt to Privately owned firms—namely, the limited access that these firms have to the equity capital market, their high rate of management and Private-equity Ownership, and their less conservative reporting. Second, we improve the reliability of the estimates of the effect of Ownership type on the cost of debt by controlling for the different information environments in which Privately and publicly owned firms operate. This is accomplished through the use of a sample consisting of publicly owned and Privately owned firms that have public debt and are therefore subject to identical reporting and disclosure requirements. C...
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Private Ownership and the cost of public debt evidence from the bond market
2015Co-Authors: Brad A Badertscher, Dan Givoly, Sharon P Katz, Hanna LeeAbstract:Using a sample of public bonds issued by Privately-owned and publicly-owned companies we find that, after controlling for financial fundamentals, bond characteristics, and information environment effects, the cost of public debt issued by Privately-owned companies as captured by ratings and yield spreads is significantly higher than that issued by publicly-owned companies. This higher cost is justified, but only in part, by higher than expected actual rates of default among Privately-owned firms. Among Privately-owned companies, the cost of debt is higher for companies controlled by Private equity (PE) firms. However, Ownership by large PE firm reduces the cost of debt to their investees as compared to those owned by smaller PE firms. The results contribute to our understanding of the costs of public versus Private Ownership and our knowledge on the role of Ownership type and “soft” information in bond valuation.
