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Chapitre D'ouvrage Année : 2010

Privatization and Governance Regulation in Frontier Emerging Markets: The Case of Romania

Résumé

This chapter investigates the link between the regulation of control transactions and the institutional and corporate features of public companies, by analyzing the massive delisting activity in the Romanian capital market. The peculiar ownership reforms involving a large number of listed companies offer a unique opportunity to verify Bebchuk and Roe’s (1999) theory of path dependence. Over time, the Romanian authorities have undertaken wide-ranging institutional reforms, most of which favor blockholders over small and dispersed shareholders. Our empirical approach, based on logit and duration models, allows us to analyze the evolution of public companies over this period and sheds light on the likely events causing frontier emerging markets’ eclipse. Our main findings reveal that delisting is more likely to occur when (i) the shareholdings acquired from the privatization authority by circumventing the capital market are high; (ii) the company experiences frequent takeover bids; and (iii) the stock liquidity is low.

Dates et versions

hal-04212909 , version 1 (20-09-2023)

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Gilles Chemla, Adrian Pop, Diana Pop. Privatization and Governance Regulation in Frontier Emerging Markets: The Case of Romania. Financial Institutions and Markets: The Financial Crisis - An Early Retrospective, Palgrave Macmillan US, pp.205-224, 2010, ⟨10.1057/9780230117365_9⟩. ⟨hal-04212909⟩
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