Corporate Governance and Value Creation: Evidence from Private Equity - HEC Paris - École des hautes études commerciales de Paris Access content directly
Journal Articles Review of Financial Studies Year : 2013

Corporate Governance and Value Creation: Evidence from Private Equity

Abstract

Using deal-level data from transactions initiated by large private equity houses, we find that the abnormal performance of deals is positive on average, after controlling for leverage and sector returns. Higher abnormal performance is related to improvement in sales and operating margin during the private phase, relative to that for quoted peers. General partners who are ex-consultants or ex-industry managers are associated with outperforming deals focused on internal value-creation programs, and ex-bankers or ex-accountants with outperforming deals involving significant mergers and acquisitions. The findings suggest the presence, on average, of positive but heterogeneous skills at the deal-partner level in large private equity transactions.

Dates and versions

hal-00784067 , version 1 (03-02-2013)

Identifiers

Cite

Oliver Gottschalg, Viral V. Acharya, Moritz Hahn, Conor Kehoe. Corporate Governance and Value Creation: Evidence from Private Equity. Review of Financial Studies, 2013, 26 (2), pp.368-402. ⟨10.1093/rfs/hhs117⟩. ⟨hal-00784067⟩

Collections

HEC CNRS
400 View
0 Download

Altmetric

Share

Gmail Facebook X LinkedIn More