The Value of the Freezeout Option

IF 2.8 Q2 BUSINESS

Corporate Communications Pub Date : 2019-03-01 DOI:10.2139/ssrn.217511

Z. Goshen, Z. Wiener

引用次数: 2

Abstract

The value of the freezeout option is critical in many legal policy issues concerning corporate law. In this article, we present, for the first time, a method for determining the value of the minority stock and the freezeout option. We price the freezeout option with two different sets of assumptions regarding the controlling shareholder informational advantage, using both an exogenous and endogenous stock prices in our pricing. The result of our model indicates that the freezeout option has a low value and the minority stock is only slightly discounted. This result implies that the use of publicly known information, including market prices, in determining a fair value for minority stocks will not cause expropriation of minority shareholders and will not lead to inefficiency in corporate and controlling ownersâ€™ decisions. Empirical studies support this view.

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冻结选项的值

冻结选择权的价值在许多有关公司法的法律政策问题中至关重要。在本文中，我们首次提出了一种确定少数股权和冻结期权价值的方法。我们用两组不同的关于控股股东信息优势的假设来定价冻结期权，在定价中同时使用外生和内生的股票价格。我们的模型结果表明冻结期权的价值很低，少数股权只被轻微打折。这一结果意味着，在确定中小股东股票的公允价值时，使用包括市场价格在内的公开信息不会导致对中小股东的剥夺，也不会导致公司和控股所有者决策效率低下。实证研究支持这一观点。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Corporate Communications BUSINESS-

CiteScore

3.90

自引率

20.00%

发文量

期刊介绍： Corporate Communications: An International Journal addresses the issues arising from the increased awareness that an organisation''s communications are part of the whole organisation, and that the relationship an organisation has with its external public requires careful management. The responsibility for communications is increasingly being seen as part of every employee''s role and not simply the function of the marketing/PR departments. This journal will illustrate why communications are important and how best to implement a strategic communications plan.