IDEAS home Printed from https://ideas.repec.org/p/hhs/ratioi/0269.html
   My bibliography  Save this paper

A long-term perspective on private equity ownership

Author

Listed:
  • Nordström, Louise

    (The Ratio institute and Jönköping School of Economics.)

Abstract

Private equity companies are targets to a never-ending controversy debate about their contribution to the economy. The existing empirical data provide, on the one hand, strong evidence that private equity activity contribute positively to efficiency of companies, but they are often viewed as short-term investors who utilize firms’ resources. In this paper I find no empirical support for that claim. By a unique dataset that covers all majority buyouts in Sweden by Swedish private equity firms from 1997-2010 I end up following 680 portfolio firms before and after the buyout as well as after the exit and a peer group defined by industry, size, age and financial performance. I do, however, find that the firms actually performs better after they exit from the private equity firm, which might be a result of sustainable long-term investments rather than short-termism.

Suggested Citation

  • Nordström, Louise, 2016. "A long-term perspective on private equity ownership," Ratio Working Papers 269, The Ratio Institute.
    • Handle: RePEc:hhs:ratioi:0269
    as

    Download full text from publisher

    File URL: http://ratio.se/publikationer/working-paper-no-269-a-long-term-perspective-on-private-equity-ownership/
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Private equity; exit; financial performance;
    All these keywords.

    JEL classification:

    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:ratioi:0269. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Martin Korpi (email available below). General contact details of provider: https://edirc.repec.org/data/ratiose.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.