This study derives testable hypotheses from their framework and thus provides an empirical test of interest alignment theory based on a sample of 69 management buyouts in the UK. The results of the multivariate regression model suggest that in this setting, interest alignment does have a...

This paper articulates a theory of the conditions under which the alignment between individual and collective interests generates sustainable competitive advantage. The theory is based on the influence of tacitness, context-specificity and casual ambiguity in the determinants of different types...

The authors use a contingent claims analysis model to calculate the idiosyncratic risks in Leveraged Buyout transactions.

This paper proposes to revisit the debate on the theory of the firm using motivation theory as the primary analytical tool.

This paper assesses the risk-adjusted performance of US buyouts.

This paper explores the relationship between dominant local political views and the volume and performance of leveraged buyout investments.

The performance of private equity funds as reported by industry associations and previous research is overstated. A large part of performance is driven by inflated accounting valuation of ongoing investments and we find a bias toward better performing funds in the data. We find an average...

This paper addresses the problem to assess the effect of leverage on the cost of capital for buyout performance analyses. It draws on a unique and proprietary set of data on 133 US buyouts between 1984 and 2004. For each of them, we determine a public market equivalent that matches it with...

We study the process of how firms access basic research and translate this into applied research. Drawing on basic research, firms develop higher quality technologies and develop these technologies more intensely internally. Critical in this process are boundary crossing inventors - inventors...