Cumming, Douglas; Zambelli, Simona - In: Journal of Banking & Finance 37 (2013) 5, pp. 1508-1523
This study investigates the impact of excessive regulation on private equity (PE) returns and firm performance. History … shows that extreme regulation and prohibition reduce the supply of capital and raise returns (e.g., as with drugs and … diamonds). However, for value-added investors such as PE funds, extreme regulation also reduces the quality of capital and fund …