Private benefits from control block trades in the spanish stock exchange

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dc.contributor.authorPérez-Soba Aguilar, Inés
dc.contributor.authorMartínez Cañete, Ana Rosa
dc.contributor.authorMárquez De La Cruz, Elena
dc.date.accessioned2024-07-15T07:23:50Z
dc.date.available2024-07-15T07:23:50Z
dc.date.issued2021-04-01
dc.description.abstractA control block trade can be explained by the expectation of financial gains, shared by all shareholders, or by the expectation of private benefits, exclusive to the buyer and possibly at the expense of other shareholders’ rents. The market for corporate control contributes to social welfare when it improves the efficiency of the allocation of resources. When the objective of a block transaction is private benefits, social welfare may be negatively impacted as minority shareholders could withdraw from the market. Therefore the estimation of private benefits would allow the efficiency of the market for corporate control to be assessed. Specifically, the aim of this paper is to calculate private benefits in the Spanish market for partial control. Using a sample of partial control transactions over the period 1990–2016, we find that the median of private benefits is negative, therefore it appears that there is no inefficient use of resources in the Spanish partial control market as a whole, however private costs are detected. The variability of private benefits is explained in a significant way by variables related to the control structure of the target firm, such as the controlling position of the buyer after the transaction, the contestability of control and the cross-shareholdings between the buyer and large shareholders. Performance and the size of the firm are significant as well.
dc.description.departmentDepto. de Economía Aplicada, Pública y Política
dc.description.facultyFac. de Ciencias Económicas y Empresariales
dc.description.refereedTRUE
dc.description.sponsorshipMinisterio de Economía y Competitividad (España)
dc.description.statuspub
dc.identifier.citationPérez-Soba, I., Martínez-Cañete, A. R., & Márquez–de-la-Cruz, E. (2021). Private benefits from control block trades in the Spanish stock exchange. The North American Journal of Economics and Finance, 56, 101338. https://doi.org/10.1016/j.najef.2020.101338
dc.identifier.doi10.1016/j.najef.2020.101338
dc.identifier.essn1879-0860
dc.identifier.issn1062-9408
dc.identifier.officialurlhttps://doi.org/10.1016/j.najef.2020.101338
dc.identifier.urihttps://hdl.handle.net/20.500.14352/106071
dc.issue.number101338
dc.journal.titleNorth American Journal of Economics and Finance
dc.language.isoeng
dc.page.final13
dc.page.initial1
dc.publisherElsevier
dc.relation.projectIDECO2016-77843
dc.relation.projectIDinfo:eu-repo/grantAgreement/AEI/Plan Estatal de Investigación Científica y Técnica y de Innovación 2017-2020/PGC2018-095072-B-I00/ES/INCERTIDUMBRE, CONEXIONES EN VOLATILIDAD, Y LOS EFECTOS DE LAS FRICCIONES EN LOS PRECIOS DE LOS ACTIVOS FINANCIEROS Y LA ACTIVIDAD REAL/
dc.rights.accessRightsrestricted access
dc.subject.jelG12
dc.subject.jelG34
dc.subject.jelG38
dc.subject.keywordPrivate benefits
dc.subject.keywordBlock trades
dc.subject.keywordPartial control acquisitions
dc.subject.keywordOwnership structure
dc.subject.keywordSpanish market
dc.subject.ucmEconomía
dc.subject.ucmEmpresas
dc.subject.unesco53 Ciencias Económicas
dc.titlePrivate benefits from control block trades in the spanish stock exchange
dc.typejournal article
dc.type.hasVersionVoR
dc.volume.number56
dspace.entity.typePublication
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relation.isAuthorOfPublication06376186-3ad8-48c5-b151-fc101fdf8843
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relation.isAuthorOfPublication.latestForDiscoverya6b2bbc5-e80b-4881-86f4-04cb470a34c6
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