Large block trades and private benefits of control on Polish capital market
Large block trades and private benefits of control on Polish capital market

Summary/Abstract: The literature defines private benefits as benefits that accrue to managers or controlling shareholders, but not to minority shareholders. The purpose of this paper is to determine private benefits of control value on the Polish capital market in the period from 1996 to 2014. The research methodology was proposed originally by Barclay and Holderness, and later modified by Dyck and Zingales, Nicodano and Sembenelli and Massari, Monge and Zanetti. As in the case of the above-mentioned researchers, attention has been focused on block transactions; nevertheless, a process of transaction selection for the survey sample has been modified. This empirical analysis includes 175 transactions which concerned more than 5% of votes and in which both the purchaser and the seller of a package of shares were known. The block premium estimated based on this set of data was from 10.52 to 4.41%, whereas the standardised premium was ruled at a respectively lower level from 1.11 to 0.46%.

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