Do Publicly Traded Firms Price Differently From Private Firms?

This paper analyzes whether publicly traded firms price differently from privately held firms in the product markets. The main contribution is to present empirical evidence on the effect of ownership structure on pricing. The model shows that public firm shareholders optimally demand short-run retur...

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Detalles Bibliográficos
Autor principal: Schargrodsky, Ernesto
Formato: Documento de trabajo publishedVersion
Lenguaje:Inglés
Publicado: Universidad Torcuato Di Tella 2024
Materias:
Medios de comunicación de masas
Periódicos
Empresa privada
Private enterprise
Empresa pública
Public enterprise
Estrategia comercial
Commercial strategy
Precios
Prices
Acceso en línea:https://repositorio.utdt.edu/handle/20.500.13098/12982
Aporte de:
Repositorio Digital Universidad Torcuato Di Tella de Universidad Torcuato Di Tella
id I57-R163-20.500.13098-12982
record_format dspace
spelling I57-R163-20.500.13098-129822024-08-30T20:38:31Z Do Publicly Traded Firms Price Differently From Private Firms? Schargrodsky, Ernesto Medios de comunicación de masas Periódicos Empresa privada Private enterprise Empresa pública Public enterprise Estrategia comercial Commercial strategy Precios Prices This paper analyzes whether publicly traded firms price differently from privately held firms in the product markets. The main contribution is to present empirical evidence on the effect of ownership structure on pricing. The model shows that public firm shareholders optimally demand short-run returns to reduce agency costs. This stock-market pressure forces public firms to charge higher prices than private firms do. The evidence shows that in the US newspaper industry public firms charge higher advertising rates than private firms. The effects are statistically and economically significant. In addition, public firm prices are decreasing in insiders' ownership participation. To our knowledge, there are no previous studies comparing pricing by private and public companies. Este Documento forma parte de la serie Working Papers (ISSN 0327-9588), publicada por la Universidad Torcuato Di Tella entre 1993 y 2001 2024-08-23T17:13:59Z 2024-08-23T17:13:59Z 1998-12 info:eu-repo/semantics/workingPaper info:eu-repo/semantics/publishedVersion https://repositorio.utdt.edu/handle/20.500.13098/12982 eng Working Papers (ISSN: 0327-9588) info:eu-repo/semantics/openAccess https://creativecommons.org/licenses/by-sa/2.5/ar/ 38 p. application/pdf application/pdf Universidad Torcuato Di Tella
institution Universidad Torcuato Di Tella
institution_str I-57
repository_str R-163
collection Repositorio Digital Universidad Torcuato Di Tella
language Inglés
orig_language_str_mv eng
topic Medios de comunicación de masas
Periódicos
Empresa privada
Private enterprise
Empresa pública
Public enterprise
Estrategia comercial
Commercial strategy
Precios
Prices
spellingShingle Medios de comunicación de masas
Periódicos
Empresa privada
Private enterprise
Empresa pública
Public enterprise
Estrategia comercial
Commercial strategy
Precios
Prices
Schargrodsky, Ernesto
Do Publicly Traded Firms Price Differently From Private Firms?
topic_facet Medios de comunicación de masas
Periódicos
Empresa privada
Private enterprise
Empresa pública
Public enterprise
Estrategia comercial
Commercial strategy
Precios
Prices
description This paper analyzes whether publicly traded firms price differently from privately held firms in the product markets. The main contribution is to present empirical evidence on the effect of ownership structure on pricing. The model shows that public firm shareholders optimally demand short-run returns to reduce agency costs. This stock-market pressure forces public firms to charge higher prices than private firms do. The evidence shows that in the US newspaper industry public firms charge higher advertising rates than private firms. The effects are statistically and economically significant. In addition, public firm prices are decreasing in insiders' ownership participation. To our knowledge, there are no previous studies comparing pricing by private and public companies.
format Documento de trabajo
publishedVersion
author Schargrodsky, Ernesto
author_facet Schargrodsky, Ernesto
author_sort Schargrodsky, Ernesto
title Do Publicly Traded Firms Price Differently From Private Firms?
title_short Do Publicly Traded Firms Price Differently From Private Firms?
title_full Do Publicly Traded Firms Price Differently From Private Firms?
title_fullStr Do Publicly Traded Firms Price Differently From Private Firms?
title_full_unstemmed Do Publicly Traded Firms Price Differently From Private Firms?
title_sort do publicly traded firms price differently from private firms?
publisher Universidad Torcuato Di Tella
publishDate 2024
url https://repositorio.utdt.edu/handle/20.500.13098/12982
work_keys_str_mv AT schargrodskyernesto dopubliclytradedfirmspricedifferentlyfromprivatefirms
_version_ 1809801532388933632

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