We analyze a publicly-traded firm’s decision to stay public or go private when managerial autonomy from shareholder intervention affects the supply of productive inputs by management. We show that both the advantage and the disadvantage of public ownership relative to private ownership lie in...

In this Paper we analyse an entrepreneur/manager’s choice between private and public ownership in a setting in which management needs some ‘elbow room’ or autonomy to manage the firm optimally. In public capital markets, the corporate governance regime in place exposes the firm to...