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Private Equity Financial Bubble? Value Creation, Financial Leverage and Corporate Governance

Harbula, Péter - 2011

This article aims to analyze the evolution of private equity over the last decade in terms of valuation (asset prices), determinants of private equity returns and the role that leverage and corporate governance plays in the success of private equity. The years 2005-2007 were characterized by a...

Persistent link: https://www.econbiz.de/10013120690

Debt Structure, Private Equity Reputation, and Performance in Leveraged Buyouts

Liu, Chen - 2014

This paper provides a comprehensive study of deal characteristics and participants’ involvement in leveraged buyouts (LBOs) and their impact on target firms’ performance. Using a sample of 501 U.S. LBOs completed between 1986 and 2011, I find that better post-buyout operating performance are...

Persistent link: https://www.econbiz.de/10014154625

What Do Private Equity Firms Say They Do?

Gompers, Paul A. - 2017

We survey 79 private equity (PE) investors with combined assets under management of more than $750 billion about their practices in firm valuation, capital structure, governance, and value creation. Investors rely primarily on internal rates of return and multiples to evaluate investments. Their...

Persistent link: https://www.econbiz.de/10012973133

Knauer, Alexander - 2014

In this paper we address the magnitude of debt-related tax shields employing a proprietary data set of 56 German leveraged buyouts (LBOs) completed between 1997 and 2011. In particular we examine the relevance and performance contribution of tax shields under different financing policies, and...

Persistent link: https://www.econbiz.de/10013064696

Timely "gain recognition" in debt contracting - evidence from cost savings and synergy add-backs

Jiang, Shushu - 2021

In this paper, I study the inclusion of cost savings and synergy add-backs (cost-synergy add-backs hereafter) in loan … contracts. Such add-backs allow borrowers to add unrealized cost savings and synergy gains into contractual earnings … calculations and thus reflect timely gain recognition in debt contracting. I find that the implications of cost-synergy add …

Persistent link: https://www.econbiz.de/10012595453

ESG Transparency of Private Equity and Debt Firms

Böni, Pascal; Hendrikse, Jurian; Joos, Philip - 2022

Institutional investors’ exposure to private market funds exceeds 12 trillion US dollars. Despite this and contrary to public markets, little is known about the extent and determinants of ESG transparency in private markets. Using a novel dataset, we investigate ESG disclosures in the...

Persistent link: https://www.econbiz.de/10014237784

Cross-Border Leveraged Buyouts

Holloway, Isaac - 2016

We study the global competition among private equity (PE) buyout firms. Using a detailed data set of PE firm characteristics, we investigate how PE firm heterogeneity across strategy and performance affects the volume of cross-border acquisitions. A one-standard-deviation increase in performance...

Persistent link: https://www.econbiz.de/10013005379

Are private equity investors good or evil?

Badunenko, Oleg; Barasinska, Nataliya; Schäfer, Dorothea - 2009

The paper investigates the motives of activity (entry and exit) of Private Equity (PE) investors in European companies. Investment of a PE firm is not viewed unambiguously. First, it is claimed that PE investment is made for the sake of seeking shortterm gains by taking control and utilizing the...

Persistent link: https://www.econbiz.de/10011387120

The Leveraged Invisible Hand : How Private Equity Enhances the Market for Corporate Control and Capitalism Itself

Stringham, Edward Peter; Vogel, Jack - 2018

What keeps corporate managers from underperforming or disregarding shareholders interests? In contrast to most scholars and policymakers who believe legal and regulatory oversight is key, Henry Manne's Mergers and the Market for Corporate Control describes a private or entirely invisible hand...

Persistent link: https://www.econbiz.de/10014113518

Deciphering Private Equity Incentive Contracting and Fund Leverage Choice

Riddiough, Timothy J. - 2021

I explain the standard carried interest contract as a mechanism to induce incentive compatible fund leverage while also satisfying LP return objectives. Fee, leverage and target return data from private equity real estate (PERE) funds are used to calibrate the model. Steps in the modeling...

Persistent link: https://www.econbiz.de/10013215169