Agency, strategic entrepreneurship and the performance of private equity backed buyouts
AbstractAgency theory has focused on buyouts as a governance and control device to increase profitability, organizational efficiency and limited attention to growth. A strategic entrepreneurship view of buyouts incorporates upside incentives for value creation associated with growth as well as efficiency gains. In this paper, we develop the complementarity between agency theory and strategic entrepreneurship perspectives to examine the performance implications for different types of buyouts. Further, we study how the involvement of private equity firms is related to the performance of the post-buyout firm. These issues are examined for a sample of 238 private equity backed buyouts in the UK between 1993 and 2003. Implications for theory and practice are suggested.
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Bibliographic InfoPaper provided by Vlerick Leuven Gent Management School in its series Vlerick Leuven Gent Management School Working Paper Series with number 2008-05.
Length: 45 pages
Date of creation: 03 Jun 2008
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-06-21 (All new papers)
- NEP-BEC-2008-06-21 (Business Economics)
- NEP-CSE-2008-06-21 (Economics of Strategic Management)
- NEP-CTA-2008-06-21 (Contract Theory & Applications)
- NEP-ENT-2008-06-21 (Entrepreneurship)
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- Anne-Laure Le Nadant & Frédéric Perdreau, 2012.
"Do Private Equity Firms Foster Innovation? Evidence from French LBOs,"
Economics Working Paper Archive (University of Rennes 1 & University of Caen)
201209, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
- Anne-Laure Le Nadant & Frédéric Perdreau, 2011. "Do Private Equity Firms Foster Innovation? Evidence from French LBOs," Post-Print halshs-00773693, HAL.
- Kevin Amess & Mike Wright, 2012. "Leveraged buyouts, private equity and jobs," Small Business Economics, Springer, vol. 38(4), pages 419-430, May.
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