| Budget Amount *help |
¥2,340,000 (Direct Cost: ¥1,800,000、Indirect Cost: ¥540,000)
Fiscal Year 2011: ¥130,000 (Direct Cost: ¥100,000、Indirect Cost: ¥30,000)
Fiscal Year 2010: ¥520,000 (Direct Cost: ¥400,000、Indirect Cost: ¥120,000)
Fiscal Year 2009: ¥1,690,000 (Direct Cost: ¥1,300,000、Indirect Cost: ¥390,000)
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| Research Abstract |
We examine the driving factors behind going-private decisions for listed subsidiaries in Japan. In the logistic analysis, we find that higher leverage, lower capital expenditure to total assets and lower return on assets are significantly related to the probability of delisting event. Market-to-book ratio is not statistically significant in the logistic analysis. We do not find evidence that parent company takes advantage of the higher valuation. The parent company might want to put the extra debt of highly levered subsidiaries to parent’s balance sheet to get the better debt contract.
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