Louise Nordström ()
Louise Nordström: The Ratio institute and Jönköping School of Economics., Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden, Jönköping International Business School,, P.O. Box 1026, 551 11 Jönköping
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.
21 pages, April 12, 2016
Full text files
Questions (including download problems) about the papers in this series should be directed to Martin Korpi ()
Report other problems with accessing this service to Sune Karlsson ().
This page generated on 2022-10-25 15:57:22.