49 B. A.Johnson, “QuantitativeSupport forDiscounts for
Lack of Marketability,” Business Valuation Review 16
(1999): 152–155.
50 K.H.Wruck,“EquityOwnershipConcentrationandFirm
Value:EvidencefromPrivateEquityFinancings,”Journalof
FinancialEconomics 23 (1989):3–28.Sheconcludedthata
significant portion of the discount could be attributed to
control changes at the firms.
51 M. Hertzel and R. L. Smith, “Market Discounts and
ShareholderGainsfromPlacingEquityPrivately,”Journalof
Finance48 (1993): 459–486.
52 M.Bajaj,D.J.Dennis,S.P.Ferris,andA.Sarin,“Firm
Value and Marketability Discounts,” Journal of Corporate
Law27 (2001).
53 J.D.Emory,“TheValueofMarketabilityasIllustratedin
Initial, Public Offerings,” Business Valuation Review 16
(1997).ThisstudyisreportedinA.Pratt,R.Reilly,andR.P.
Schwiehs,ValuingaBusiness:TheAnalysisandAppraisalof
Closely Held Companies(New York: McGraw-Hill, 1997).
54 Williamette Associates, 2002.
55 Restricted Institutional Shares have to be transacted
through private placements. Starting in August 2000, the
Chinesegovernmenthas alsoallowedforauctions ofthese
shares,whereitispresumablyalittleeasiertofindapotential
buyer.