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The Sales of Small firms : a multidimensional analysis

Author

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  • Christian At

    (GATE - Groupe d'analyse et de théorie économique - UL2 - Université Lumière - Lyon 2 - ENS LSH - Ecole Normale Supérieure Lettres et Sciences Humaines - CNRS - Centre National de la Recherche Scientifique)

  • Pierre-Henri Morand

Abstract

This paper endogeneizes the security voting structure in an auction mechanism used to sell a small firm. The design of security voting structure allows the seller to choose between two objectives which are not mutually consistent. If the seller wants to maximize his revenue, he should retain some shares to benefit from the future dividends generated by the acquirer. At the opposite, if he wants to sell his firm to the most efficient candidate, he should sell all the shares.

Suggested Citation

  • Christian At & Pierre-Henri Morand, 2001. "The Sales of Small firms : a multidimensional analysis," Post-Print halshs-00179998, HAL.
    • Handle: RePEc:hal:journl:halshs-00179998
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00179998
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    References listed on IDEAS

    as
    1. Francesca Cornelli & David D. Li, 1997. "Large Shareholders, Private Benefits of Control, and Optimal Schemes of Privatization," CESifo Working Paper Series 133, CESifo.
    2. Paul Klemperer, 1999. "Auction Theory: A Guide to the Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 13(3), pages 227-286, July.
    3. Grossman, Sanford J. & Hart, Oliver D., 1988. "One share-one vote and the market for corporate control," Journal of Financial Economics, Elsevier, vol. 20(1-2), pages 175-202, January.
    4. Shleifer, Andrei & Vishny, Robert W, 1997. "A Survey of Corporate Governance," Journal of Finance, American Finance Association, vol. 52(2), pages 737-783, June.
    5. At, Christian & Morand, Pierre-Henri, 2000. "The choice of the voting structure for privatizing a company," Economics Letters, Elsevier, vol. 68(3), pages 287-292, September.
    6. Francesca Cornelli & David D. Li, 1997. "Large Shareholders, Private Benefits of Control, and Optimal Schemes of Privatization," RAND Journal of Economics, The RAND Corporation, vol. 28(4), pages 585-604, Winter.
    7. Klemperer, Paul, 1999. " Auction Theory: A Guide to the Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 13(3), pages 227-86, July.
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    Cited by:

    1. Heather Fulford & Alex Rizzo, 2009. "A Conceptual Model For The Strategic Orientation Of Small Firms," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 17(01), pages 25-54.
    2. Grundström, Christina & Öberg, Christina & Öhrwall Rönnbäck, Anna, 2012. "Family-owned manufacturing SMEs and innovativeness: A comparison between within-family successions and external takeovers," Journal of Family Business Strategy, Elsevier, vol. 3(3), pages 162-173.

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    More about this item

    Keywords

    auctions; security voting structure; small firms; enchères; PME; structure en droits de vote;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

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