The Dodd-Frank Act and the Private Company Discount: An Empirical Investigation

2020 ◽  
Author(s):  
Peter L. Lohrey
Keyword(s):  
Empirical Investigation ◽  
Negative Impact ◽  
Purchase Price ◽  
Private Company ◽  
Private Companies ◽  
Public Companies ◽  
Significant Evidence ◽  
Public Firms ◽  
Academic Literature ◽  
Tax Court

There has been a great deal of criticism about the Dodd-Frank Act of 2010 (DFA) which focuses on the negative impact it had on small public companies. This study uses acquisition data to perform an empirical investigation into whether the DFA impacted the value of private companies. The results present statistically significant evidence that the purchase price discount for non-public firms was greater post-DFA. The evidence presents support for the opinion that the DFA was more harmful to private companies than it was to public companies. It also supports the existent academic literature, tax court, federal regulator and valuation practitioner views that private company acquisitions should include a discount for lack of marketability due to the illiquid nature of private companies.

Financial Reporting Fraud: Public and Private Companies

2016 ◽  
Vol 1 (1) ◽  
pp. A27-A41 ◽  
Author(s):  
A. Scott Fleming ◽  
Dana R. Hermanson ◽  
Mary-Jo Kranacher ◽  
Richard A. Riley
Keyword(s):  
Financial Reporting ◽  
Primary Objective ◽  
Private Company ◽  
Private Companies ◽  
Public And Private ◽  
Public Companies ◽  
Multivariate Tests ◽  
Public Company ◽  
Public Versus Private ◽  
Financial Reporting Fraud

ABSTRACT This study uses survey data gathered by the Association of Certified Fraud Examiners (ACFE) and provided to the Institute for Fraud Prevention (IFP) to examine differences in the profile of financial reporting fraud (FRF) between private companies and public companies. Although private companies represent a significant portion of the economy, largely due to lack of data on these companies, most research on FRF examines only public companies. The primary objective of this study is to determine how private company FRF is different from FRF in public companies. Our multivariate tests reveal that public companies have stronger anti-fraud environments, are more likely to have frauds that involve timing differences, tend to experience larger frauds, have frauds that involve a larger number of perpetrators, and are less likely to have frauds that are discovered by accident. Overall, it appears that the stronger anti-fraud environment in public companies leads public company FRF perpetrators to use less obvious fraud methods (i.e., timing differences) and to involve larger fraud teams to circumvent the controls. These public company frauds are larger than in private companies, and their larger size may make them more likely to be detected through formal means, rather than by accident. Based on the results, we encourage auditors and others to be particularly attuned to the unique risks of the public versus private setting.

scholarly journals Capital structure: Empirical evidences of public and non-public firms in Brazil

2015 ◽  
Vol 12 (3) ◽  
pp. 223-232
Author(s):  
Gabriel Hideo Sakai de Macedo ◽  
Joelson Oliveira Sampaio ◽  
Eduardo Flores ◽  
Pedro Luiz Aprigio
Keyword(s):  
Capital Structure ◽  
Cash Flow ◽  
Stock Exchange ◽  
Credit Market ◽  
Convertible Debt ◽  
Short Term ◽  
Private Companies ◽  
Public Companies ◽  
Public Firms

This study seek to contribute to the literature through research focused on companies listed and not listed on the stock exchange. A survey was used to identify the capital structure of Brazilian companies and relate the results to the Brazilian credit market. The results indicate that most of the investigated companies prefer not to issue convertible debt, as well as the share of firms issuing common shares was small. It was found that firms do not have preference between long-term and short-term debt. Finally, it was also noted that private companies have great concern about the volatility of earnings and cash flow. The differential of this research was to analyze the practices adopted by both public companies and privately held

scholarly journals Public versus Private: New Insights into the Private Company Discount

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Sabrina Goetz
Keyword(s):  
Lower Risk ◽  
Firm Characteristics ◽  
Publicly Traded ◽  
Private Company ◽  
Private Companies ◽  
Public Companies ◽  
Publicly Traded Companies ◽  
Percentage Difference ◽  
Industry Membership ◽  
Public Versus Private

Abstract We examine whether private companies are valued with a discount compared to publicly traded companies. The analysis is based on a comparison of private company transactions with those of public companies. Whereas prior studies build pairs based on industry membership, we match private companies with public counterparts that are comparable in value relevant firm characteristics, i.e. profitability, risk, and growth, to calculate the percentage difference in valuation multiples. We find that private companies are valued on average with a discount on the EBITDA-multiple of 13% compared to their public counterparts. Private companies sell at lower discounts, if the acquirer firm is publicly listed. As size is associated with lower risk, we show that larger private companies sell at lower discounts.

scholarly journals Development of Integrated Reporting in Poland

2021 ◽  
Vol 1 (2) ◽  
Author(s):  
Bartosz Rymkiewicz
Keyword(s):  
Negative Impact ◽  
Rapid Development ◽  
Point Of View ◽  
Financial Information ◽  
Integrated Reporting ◽  
Public Companies ◽  
Wide Range ◽  
Quality Of Reports ◽  
Financial Disclosures ◽  
Social Environmental

Organizational reporting is the most important tool of communication between an enterpriseand its stakeholders. However, it is not a static tool but continues to develop and adapt to ongoingeconomic and social changes. Formerly covering only financial information; currently, it is supplementedby a wide range of non-financial information relating to all aspects of the business. The evolution ofreporting is particularly fostered by the rapid development of the concepts of corporate socialresponsibility and sustainable development, as well as the progressing changes in the information needsof stakeholders. Enterprises are increasingly publishing voluntary reports concerning the social,environmental, and employment aspects of their business in addition to reports required by law. Thisresults in the multiplication of reports and duplication of content, which has a negative impact on thereports' usefulness. The solution to this problem may be integrated reporting, which integrates andinterconnects financial and non-financial disclosures. A milestone for the development of integratedreporting was the elaboration of integrated reporting guidelines by the International Integrated ReportingCouncil (IIRC) in December 2013. The aim of the paper is to present the development of integratedreporting in Poland in 2014-2020 on the example of public companies listed on the Warsaw StockExchange. The quality of reports was assessed from the point of view of compliance with IIRC guidelines,as well as their usefulness for stakeholders. Content analysis of corporate publications and comparativeanalysis was used for this purpose.

scholarly journals METHODS AND WAYS OF ASSESSMENT OF LOSSES FROM CORRUPTION THEFT IN PUBLIC SECTOR OF ECONOMY

2019 ◽  
pp. 131-141 ◽  
Author(s):  
Sergei Aleksandrovich Konovalenko ◽  
Georgy Ismaylovich Harada ◽  
Nazirkhan Gadzhievich Gadzhiev
Keyword(s):  
Public Sector ◽  
Political Development ◽  
Negative Impact ◽  
The State ◽  
Public Funds ◽  
Public Companies ◽  
Financial Flows ◽  
The Public ◽  
Goods And Services ◽  
The Government

Implementation of the decisions made in the course of management of economic and socio-political development of the state causes the adequate financial flows forming the budgetary sphere of the state. The trouble in this sphere does not allow to provide the necessary level of economic growth, hampers reforming of the economy, makes negative impact on commercial and foreign economic activity, interferes with improvement of monetary and credit, tax, insurance and other spheres of the financial system of the Russian Federation. The offenses connected with corruption and theft of budget funds committed by officials at various levels significantly undermine the authority of the government, cause a growth of discontent of society and impact the social and economic situation in the country. The practice of identifying the offenses connected with theft of public funds and property shows that practically all spheres of the public sector of economy are, to a greater or lesser extent, subject to the risks of such crimes commitment. In this regard, a research of methods and ways of assessment of corruption theft amount in the public sector of the economy is an important and hot topic. The main types of public funds theft have been analyzed, including theft of budget funds allocated in the form of grants for targeted measures; theft by overcharging the prices of goods and services used for the state needs; the acquisition of inventory for personal use of the heads of public companies at the expense of the company, etc. The dynamics of the amount of budget crimes in the Ryazan region has been analyzed. It was inferred that corruption crimes in the public sector of the Ryazan region include fraud, abuse of power, abuse of authority, illegal participation in business, as well as taking bribes. A set of measures for preventing the above crimes has been proposed.

scholarly journals Hagnýting menntunar meðal háskólamenntaðs starfsfólks einkarekinna fyrirtækja og opinberra stofnana

2017 ◽  
Vol 13 (1) ◽  
pp. 151
Author(s):  
Ingi Rúnar Eðvarðsson ◽  
Guðmundur Kristján Óskarsson ◽  
Jason Már Bergsteinsson
Keyword(s):  
Social Science Research ◽  
Science Research ◽  
Target Population ◽  
University Education ◽  
Private Companies ◽  
Public Companies ◽  
National Population Register ◽  
The Difference ◽  
The One ◽  
The University

The aim of the article is to examine whether there is a difference in the utilization of education among university educated employees in private companies on the one hand and public institutions on the other. The target population of the research was based on a random sample drawn from the National Population Register by the National Survey of the Social Science Research Institute of the University of Iceland from 9 March to 9 April 2016. The survey included 2,001 individuals, aged 18 or above, from all over the country. A total of 1,210 persons responded to the survey. This research only involved those participants in the sample who had completed a university education and were salaried employees in Iceland. After data cleansing, 374 participants remained, 178 males and 196 females. The initial results of the research indicated that 20.3% of participants were over-educated for their jobs. The majority of females work in public companies, while the majority of males work in private companies. Individuals with under-education are most likely to be found within public companies, at the same time as over-educated individuals are most likely to be found in private companies (the difference lies in the under- and over-education of females). Those working in public companies come primarily from educational and health sicences, while engineers and natural sicentists work primarily at private companies. Incomes are higher in private companies.

scholarly journals The Relationship between Recruiter Burnout, Work Engagement and Turnover Intention: Evidence from Serbia

2020 ◽  
Vol 31 (2) ◽  
pp. 197-210
Author(s):  
Tatjana Ivanovic ◽  
Sonja Ivancevic ◽  
Milica Maricic
Keyword(s):  
Work Engagement ◽  
Turnover Intention ◽  
Structural Equation ◽  
Negative Impact ◽  
Positive Impact ◽  
Online Questionnaire ◽  
Academic Literature ◽  
Equation Modelling ◽  
High Degree ◽  
The Relationship

Contemporary research on disorders in modern-day work environment marks burnout among employees in different professions as an important disorder with serious consequences. Practice has shown that recruiters are one of the professions frequently facing burnout. The relationship between burnout, work engagement and turnover intention has often been investigated in the literature. However, even though scholars are increasingly interested in these relationships in other professions, there is a growing need for studies evaluating the relationship between the three concepts among human resource (HR) professionals, particularly recruiters. Having this in mind, the aim of this study is to identify, understand and examine the relationship between burnout, engagement and turnover intention of recruiters in Serbia. The data was collected using an online questionnaire within a sample of 100 recruiters in Serbia. Copenhagen Burnout Inventory was used for measuring burnout, UWES-9 for measuring work engagement and TIS-6 for measuring turnover intention. Structural equation modelling (SEM) was used for evaluating the relationships between burnout, turnover intention and work engagement. The results of the research showed that work engagement has a negative impact on burnout and that burnout has a positive impact on turnover intention, while the relationship between work engagement and turnover intention was not confirmed. The correlation analysis confirmed all three examined relationships. The results largely support the findings from the literature for other professions confirming that employees who suffer from a high degree of burnout are more likely to have a turnover intention. Finally, the implications of these results and recommendations for organizations and recruiters themselves to prevent and decrease burnout are discussed. The findings of this study can make a contribution to the specific academic literature on burnout among recruiters and initiate further research on this topic of high interest.

An empirical investigation on the impact of marketing strategy style on firm performance: evidence from public firms in China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rui Wang ◽  
Liqiong Liu ◽  
Yu Feng
Keyword(s):  
Marketing Strategy ◽  
Corporate Performance ◽  
Negative Impact ◽  
Secondary Data ◽  
Listed Companies ◽  
Research Issues ◽  
Content Type ◽  
Public Firms ◽  
Negative Effect ◽  
The Impact

PurposeThe mechanism of marketing strategy style and its impact on firms are research issues received wide attention. In particular, the aggressive style of marketing strategy has been chosen by many companies, but recent studies have shown that it has a negative effect on corporate performance. This leads to the core issue of this paper – does the aggressive style of marketing strategy always had a negative impact on corporate performance? Are there any factors that can alleviate this negative impact?Design/methodology/approachBased on the resource-based theory and agency theory, this paper takes the Growth Enterprise Market (GEM) listed companies as the research objects, collects secondary data and conducts the research by regression model.FindingsThe empirical research shows that: (1) the aggressive style of marketing strategy significantly and negatively affects the performance of firm; (2) the resource constraint can moderate the main effect and resource control play a weak adjustment role.Practical implicationsIn practice, this paper confirms the adverse impact of aggressive style of marketing strategy on the performance of listed companies on GEM and inspires the industry to strengthen the control and supervision of marketing resources.Originality/valueThis paper makes up for the research gap in the field of cross-research in finance and marketing theoretically.

The Management of Knowledge Resources within Private Organisations

2010 ◽  
pp. 36-61
Author(s):  
Federica Ricceri ◽  
James Guthrie ◽  
Rodney Coyte
Keyword(s):  
International Institutions ◽  
Economic Base ◽  
Wealth Creation ◽  
Private Company ◽  
Private Companies ◽  
Knowledge Resources ◽  
Research Questions ◽  
National Economies ◽  
Specific Organisation

National economies have rapidly moved from their industrial economic base and shifted towards a knowledge base, in which wealth creation is associated with the ability to develop and manage knowledge resources (KR) (see, among others, MERITUM, 2002; EC, 2006). Several national and international institutions have produced various Intellectual Capital (IC) frameworks1 and guidelines (e.g. MERITUM, 2002; SKE, 2007; EC, 2006) to guide in the management, measurement and reporting of IC. However, there appear to be few studies of private company practices (Guthrie & Ricceri, 2009). The above informed the following two research questions of our study: (1) In what ways, did the private companies express their strategy and the role of KR within it? (2) What tools, including ‘inscription devices’, were used for understanding and managing KR within a specific organisation? This chapter answers these questions by providing illustrations of KR and their management in practice in a variety of private companies.

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