Out-of-The-Money CEOs: Private Control Premium and Option Exercise by CEOs

The paper provides new survey evidence on effects of concentrated ownership upon investment and performance in Russian industrial enterprises. Authors trace major changes in their ownership profile, assess pace of post-privatization redistribution of shareholdings and provide evidence on ownership concentration in the Russian industry. The major econometric findings are that the first largest shareholding is negatively associated with the firm’s investment and performance but surprisingly the second largest shareholding is positively associated with them. Moreover, these relationships do not depend on identity of majority shareholders. These results are consistent with the assumption that the entrenched controlling owners are engaged in extracting "control premium" but sizable shareholdings accumulated by other blockholders may put brakes on their expropriating behavior and thus be conductive for efficiency enhancing. The most interesting topic for further more detailed analysis is formation, stability and roles of coalitions of large blockholders in the corporate sector of post-socialist countries.

Download Full-text

Private Benefits of Control and Control Premium

BUSINESS LAW REVIEW ◽

10.24886/blr.2019.6.33.2.47 ◽

2019 ◽

Vol 33 (2) ◽

pp. 47-84

Author(s):

Joon-Hyug Chung

Keyword(s):

Private Benefits ◽

Private Benefits Of Control ◽

Control Premium ◽

And Control

Download Full-text

Heineken's Acquisition of Asia Pacific Breweries: Accounting for Business Combinations and Changes in Ownership Interests

Issues in Accounting Education ◽

10.2308/iace-51845 ◽

2017 ◽

Vol 32 (4) ◽

pp. 101-127 ◽

Cited By ~ 1

Author(s):

Pearl Tan ◽

Chu-Yeong Lim

Keyword(s):

Market Share ◽

Joint Venture ◽

Interesting Case ◽

Asia Pacific ◽

Joint Control ◽

Business Combinations ◽

Final Offer ◽

Control Premium ◽

Joint Venture Partner

ABSTRACT On July 20, 2012, Heineken, a Dutch brewery offered S$5.125 billion (Singapore dollars; approximately US$4.1 billion) to buy Asia Pacific Breweries Ltd (APB; formerly, Malayan Breweries Limited) from its Singapore-based joint venture partner, Fraser and Neave, Limited. (F&N). At that point, Heineken and F&N had joint control over APB through the joint venture vehicle Asia Pacific Investments Pte Ltd (APIPL). Brewery business under the joint arrangement had moved on quite predictably from the time APB was formed in 1931. However, the calm changed to high drama when Thai Beverage, owned by one of Thailand's tycoons, made a bid for F&N and APB. Heineken was quick to respond by aggressively buying shares of APB, leading to a large control premium being paid in the final offer price. The bidding war was largely motivated by the Dutch and Thai beer giants, each wanting to own the iconic Tiger beer brand that was owned by APB and thus take control of APB's strong market share in the fast-growing market of Asia. The Heineken bid for APB presents an interesting case study regarding the motivations for acquisitions, the nature of control, and accounting for acquisitions. The case also presents rich issues in accounting for changes in ownership interests with and without gain of control.

Download Full-text

Examinations in Nineteenth Century England: State Power versus Private Control

Paedagogica Europaea ◽

10.2307/1502457 ◽

1965 ◽

Vol 1 ◽

pp. 220 ◽

Cited By ~ 2

Author(s):

J. P. C. Roach

Keyword(s):

Nineteenth Century ◽

State Power ◽

Private Control

Download Full-text

VI.—British Geological Photographs

Geological Magazine ◽

10.1017/s0016756800175041 ◽

1897 ◽

Vol 4 (1) ◽

pp. 31-37

Author(s):

W. W. Watts

Keyword(s):

United Kingdom ◽

British Association ◽

Large Collection ◽

The United Kingdom ◽

Private Control ◽

The Subject

A year ago, by the decision of the Council of the British Association, there was sent to the Museum of Practical Geology a large collection of photographs mainly taken with a view of illustrating, in the most permanent and unbiassed way at present possible, the features and phenomena of geological interest in the United Kingdom. The project of forming such a collectionoriginated with Mr. O. W. Jeffs in 1888, when he read a paperon the subject at the British Association at Bath, in which hepointed out the utility of such a collection and the necessity for forming it. When a committee was appointed in the followingyear he undertook the management of the work, and he has carriedit ou for seven years with indefatigable industry and scrupulou scare, only relinquishing it when the size of the collection beganto exceed the capabilities of private control, and when his own lackof leisure no longer permitted him to devote the requisite time andattention to its custody.

Download Full-text

Determinants of Companies’ Board Composition in Emerging Markets

International Journal of Business Administration ◽

10.5430/ijba.v12n5p17 ◽

2021 ◽

Vol 12 (5) ◽

pp. 17

Author(s):

Leticia L. N. Bellato

Keyword(s):

Emerging Market ◽

Gender Diversity ◽

Developed Countries ◽

Independent Directors ◽

Board Composition ◽

Corporate Boards ◽

Count Data Models ◽

Private Control ◽

Women On Boards ◽

Board Representation

This paper examines the determinants of female board representation for a sample of Brazilian listed companies for the year of 2018. Using count data models, we find that greater firm size, performance and board size lead to higher woman representation on companies’ boards. Also, that private control is associated with a lower number of women on boards. Most studies related to board composition focus on independent directors and are conducted in a developed countries’ setting. This work contributes to the extant literature in understanding what drives woman representation on corporate boards in an emerging market context and also would help to support the definition and implementation of gender diversity policies by showing possible impacts.

Download Full-text