Publication Cover
Venture Capital
An International Journal of Entrepreneurial Finance
Volume 24, 2022 - Issue 3-4
1,422
Views
1
CrossRef citations to date
0
Altmetric
Research Articles

Value creation in private equity portfolio companies: a structured review of evidence and proposed framework

ORCID Icon & ORCID Icon
Pages 203-286 | Received 05 Apr 2021, Accepted 19 Aug 2022, Published online: 02 Sep 2022

References

  • Acharya, Viral V., Oliver F. Gottschalg, Moritz Hahn, and Conor Kehoe. 2013. “Corporate Governance and Value Creation: Evidence from Private Equity.” The Review of Financial Studies 26 (2): 368–402. doi:10.1093/rfs/hhs117.
  • Acharya, Viral V., Conor Kehoe, and Michael Reyner. 2009. “Private Equity vs. PLC Boards in the UK: A Comparison of Practices and Effectiveness.” Journal of Applied Corporate Finance 21 (1): 45–56. doi:10.1111/j.1745-6622.2009.00215.x.
  • Achim, Berg, and Oliver F. Gottschalg. 2005. “Understanding Value Generation in Buyouts.” Journal of Restructuring Finance 2 (1): 9–37. doi:10.1142/S0219869X05000221.
  • Achleitner, Ann Kristin, and Christian Figge. 2014. “Private Equity Lemons? Evidence on Value Creation in Secondary Buyouts.” European Financial Management 20 (2): 406–433. doi:10.1111/j.1468-036X.2012.00644.x.
  • Achleitner, Ann Kristin, Eva Lutz, Kerry Herman, and Josh Lerner. 2010. “New Look: Going Private with Private Equity Support.” The Journal of Business Strategy 31 (3): 38–49. doi:10.1108/02756661011036691.
  • Amess, Kevin. 2003. “The Effect of Management Buyouts on Firm–Level Technical Inefficiency: Evidence from a Panel of UK Machinery and Equipment Manufacturers.” The Journal of Industrial Economics 51 (1): 35–44. doi:10.1111/1467-6451.00190.
  • Amess, Kevin, and Mike Wright. 2007. “The Wage and Employment Effects of Leveraged Buyouts in the UK.” International Journal of the Economics of Business 14 (2): 179–195. doi:10.1080/13571510701343923.
  • Anders, George. 1992. “The ‘Barbarians’ in the Boardroom.” Harvard Business Review 70 (4): 79–87.
  • Ayash, Brian. 2020. “The Origin, Ownership and Use of Cash Flows in Leveraged Buyouts.” Quarterly Review of Economics and Finance 77: 286–295. doi:10.1016/j.qref.2019.10.004.
  • Ayash, Brian, and Harm Schütt. 2016. “Does Going Private Add Value Through Operating Improvements?” Journal of Corporate Finance 40: 192–215. doi:10.1016/j.jcorpfin.2016.07.015.
  • Bacon, Nicolas, Mike Wright, Rod Ball, and Miguel Meuleman. 2013. “Private Equity, HRM, and Employment.” Academy of Management Perspectives 27 (1): 7–21. doi:10.5465/amp.2012.0130.
  • Bacon, Nicolas, Mike Wright, and Natalia Demina. 2004. “Management Buyouts and Human Resource Management.” British Journal of Industrial Relations 42 (2): 325–347. doi:10.1111/j.1467-8543.2004.00317.x.
  • Bacon, Nicolas, Mike Wright, Natalia Demina, Hans Bruining, and Paul Boselie. 2008. “The Effects of Private Equity and Buy-Outs on HRM in the UK and the Netherlands.” Human Relations 61 (10): 1399–1433. doi:10.1177/0018726708095709.
  • Bacon, Nick, Mike Wright, Miguel Meuleman, and Louise Scholes. 2012. “The Impact of Private Equity on Management Practices in European Buy-Outs: Short-Termism, Anglo-Saxon, or Host Country Effects?” Industrial Relations 51 (SUPPL. 1): 605–626. doi:10.1111/j.1468-232X.2012.00692.x.
  • Baker, George P., and Cynthia A. Montgomery. 1994. “Conglomerates and LBO Associations: A Comparison of Organizational Forms.” Harvard Business School Working Paper Series, No. 4, 1–34.
  • Baker, George P., and Karen H. Wruck. 1989. “Organizational Changes and Value Creation in Leveraged Buyouts: The Case of the O.M. Scott & Sons Company.” Journal of Financial Economics 25 (2): 163–190. doi:10.1016/0304-405X(89)90080-9.
  • Barnes, Paul, Ian Davidson, and Mike Wright. 1996. “The Changing Nature of Corporate Control and Ownership Structure.” Journal of Business Finance and Accounting 23 (5–6): 651–672. doi:10.1111/j.1468-5957.1996.tb01147.x.
  • Barney, Jay. 1991. “Firm Resources and Sustained Competitive Advantage.” Journal of Management 17 (1): 99–120. doi:10.1177/014920639101700108.
  • Battistin, Erich, Paolo Bortoluzzi, Fabio Buttignon, and Marco Vedovato. 2017. “Minority and Majority Private Equity Investments: Firm Performance and Governance.” Journal of Management and Governance 21 (3): 659–684. doi:10.1007/s10997-016-9364-2.
  • Bergström, Clas, Mikael Grubb, and Sara Jonsson. 2007. “The Operating Impact of Buyouts in Sweden.” The Journal of Private Equity 11 (1): 22–39. doi:10.3905/jpe.2007.699056.
  • Bernstein, Shai, and Albert Sheen. 2016. “The Operational Consequences of Private Equity Buyouts: Evidence from the Restaurant Industry.” The Review of Financial Studies 29 (9): 2387–2418. doi:10.1093/rfs/hhw037.
  • Bertoni, Fabio, Anne-Laure Le Nadant, and Frédéric Perdreau. 2020. “Management Innovation in Leveraged Buyout Companies.” Venture Capital 22 (3): 261–279. doi:10.1080/13691066.2020.1801175.
  • Biesinger, Markus, Cagatay Bircan, and Alexander Ljungqvist. 2020, May. Value Creation in Private Equity. SSRN Electronic Journal. 10.2139/ssrn.3587559
  • Bloom, Nicholas, Raffaella Sadun, and John Van Reenen. 2015. “Do Private Equity Owned Firms Have Better Management Practices?” The American Economic Review 105 (5): 442–446. doi:10.1257/aer.p20151000.
  • Bonini, Stefano. 2015. “Secondary Buyouts: Operating Performance and Investment Determinants.” Financial Management 44 (2): 431–470. doi:10.1111/fima.12086.
  • Boucly, Quentin, David Sraer, and David Thesmar. 2011. “Growth Lbos.” Journal of Financial Economics 102 (2): 432–453. doi:10.1016/j.jfineco.2011.05.014.
  • Braun, Michael R., and Scott F. Latham. 2007. “The Governance of Going Private Transactions: The Leveraged Buyout Board of Directors as a Distinctive Source of Value.” Management Decision 45 (5): 866–882. doi:10.1108/00251740710753684.
  • Braun, Michael R., and Scott F. Latham. 2009. “Rethinking Value Creation in Leveraged Buyouts: Board Restructurings Over the Public-Private-Public Cycle.” Management Decision 47 (5): 702–729. doi:10.1108/00251740910960088.
  • Brodmann, Jennifer, Charles Danso, Surendranath Rakesh Jory, and Thanh Ngo. 2021. “The Value Added by Private Equity in Mergers and Acquisitions by Financial Institutions.” Applied Economics 53 (51): 5898–5916. doi:10.1080/00036846.2021.1931657.
  • Brown, Gregory W., Oleg R. Gredil, and Steven N. Kaplan. 2019. “Do Private Equity Funds Manipulate Reported Returns?” Journal of Financial Economics 132 (2): 267–297. doi:10.1016/j.jfineco.2018.10.011.
  • Bruining, Hans, Marcel Bonnet, and Mike Wright. 2002. “Management Control Systems and Strategy Change in Buyouts.” Management Accounting Research 15 (2): 155–177. doi:10.1016/j.mar.2004.03.003.
  • Bruining, Hans, Ernst Verwaal, and Mike Wright. 2013. “Private Equity and Entrepreneurial Management in Management Buy-Outs.” Small Business Economics 40 (3): 591–605. doi:10.1007/s11187-011-9386-8.
  • Bruining, Hans, and Mike Wright. 2002. “Entrepreneurial Orientation In management Buy-Outs and the Contribution of Venture Capital.” Venture Capital 4 (2): 147–168. doi:10.1080/13691060110117427.
  • Bugl, Benjamin M., Frank P. Balz, and Dominik K. Kanbach. 2022. “Leveraging Smart Capital Through Corporate Venture Capital: A Typology of Value Creation for New Venture Firms.” Journal of Business Venturing Insights 17: 1–11. doi:10.1016/j.jbvi.2021.e00292.
  • Bull, Ivan. 1989. “Financial Performance of Leveraged Buyouts: An Empirical Analysis.” Journal of Business Venturing 4 (4): 263–279. doi:10.1016/0883-9026(89)90016-5.
  • Burth, Berthold, and Solveig Reißig-Thust. 2019. “Private Equity Deal Success and Pre-Acquisition Determinants–Empirical Evidence from Germany.” Applied Economics 51 (2): 141–154. doi:10.1080/00036846.2018.1494806.
  • Castellaneta, Francesco, and Oliver Gottschalg. 2016. “Does Ownership Matter in Private Equity? The Sources of Variance in Buyouts’ Performance.” Strategic Management Journal 37 (2): 330–348. doi:10.1002/smj.2336.
  • Castellaneta, Francesco, Simon G. Hannus, and Mike Wright. 2019. ”A Framework for Examining the Heterogeneous Opportunities of Value Creation in Private Equity Buyouts.” Annals of Corporate Governance 4 (2): 87–146.
  • Chemmanur, Thomas J., Tyler J. Hull, and Karthik Krishnan. 2021. “Cross-Border Lbos, Human Capital, and Proximity: Value Addition Through Monitoring in Private Equity Investments.” Journal of Financial and Quantitative Analysis 56: 1023–1063. doi:10.1017/S002210902000006X.
  • Christensen, Clayton M. 2006. “The Ongoing Process of Building a Theory of Disruption.” Journal of Product Innovation Management 23 (1): 39–55. doi:10.1111/j.1540-5885.2005.00180.x.
  • Ciao, Biagio. 2018. “Dynamic Capabilities’ Functioning in a Private Equity-Backed Firm.” Strategic Change 27 (1): 23–33. doi:10.1002/jsc.2177.
  • Clark, Ian. 2009. “The Private Equity Business Model and Associated Strategies for HRM: Evidence and Implications?” International Journal of Human Resource Management 20 (10): 2030–2048.
  • Cohn, Jonathan B., Edith S. Hotchkiss, and Erin M. Towery. 2022. “Sources of Value Creation in Private Equity Buyouts of Private Firms.” Review of Finance 26 (2): 257–285. doi:10.1093/rof/rfac005.
  • Cohn, Jonathan B., Lillian F. Mills, and Erin M. Towery. 2014. “The Evolution of Capital Structure and Operating Performance After Leveraged Buyouts: Evidence from U.S. Corporate Tax Returns.” Journal of Financial Economics 111 (2): 469–494. doi:10.1016/j.jfineco.2013.11.007.
  • Cotter, James F., and Sarah W. Peck. 2001. “The Structure of Debt and Active Equity Investors: The Case of the Buyout Specialist.” Journal of Financial Economics 59 (1): 101–147. doi:10.1016/S0304-405X(00)00083-0.
  • Cressy, Robert Clive, Federico Munari, and Alessandro Malipiero. 2011. “Playing to Their Strengths? Evidence That Specialization in the Private Equity Industry Confers Competitive Advantage.” SSRN Electronic Journal 13 (4): 1–30.
  • Croce, Annalisa, and José Martí. 2016. “Productivity Growth in Private-Equity-Backed Family Firms.” Entrepreneurship: Theory and Practice 40 (3): 657–683.
  • Cronqvist, Henrik, Eric Helland, Jean Helwege, Eric Hughson, Han Kim, and Mike Lemmon. 2013. “CEO Contract Design : How Do Strong Principals Do It ?” Journal of Financial Economics 108 (3): 659–674. doi:10.1016/j.jfineco.2013.01.013.
  • Cumming, Douglas, Donald S. Siegel, and Mike Wright. 2007. “Private Equity, Leveraged Buyouts and Governance.” Journal of Corporate Finance 13 (4): 439–460. doi:10.1016/j.jcorpfin.2007.04.008.
  • Cuny, Charles J., and Eli Talmor. 2007. “A Theory of Private Equity Turnarounds.” Journal of Corporate Finance 13 (4): 629–646. doi:10.1016/j.jcorpfin.2007.04.006.
  • Datta, Sudip, Mark Gruskin, and Mai Iskandar-Datta. 2013. “Lifting the Veil on Reverse Leveraged Buyouts: What Happens During the Private Period?” Financial Management 42 (4): 815–842. doi:10.1111/fima.12023.
  • Datta, Sudip, Mark Gruskin, and Mai Iskandar‐datta. 2012. “What Happens During the Private Period?: Evidence from Public‐to‐Private Reverse Lbos.” Journal of Applied Corporate Finance 24 (4): 90–101. doi:10.1111/j.1745-6622.2012.00403.x.
  • Davis, Steven J., John Haltiwanger, Kyle Handley, Ron Jarmin, Josh Lerner, and Javier Miranda. 2014. “Private Equity, Jobs, and Productivity.” The American Economic Review 104 (12): 4184–4204. doi:10.1257/aer.104.12.3956.
  • Degeorge, Francois, Jens Martin, and Ludovic Phalippou. 2016. “On Secondary Buyouts.” Journal of Financial Economics 120 (1): 124–145. doi:10.1016/j.jfineco.2015.08.007.
  • Denis, David J. 1994. “Organizational Form and the Consequences of High Leveraged Transactions Krogers Recapitalization.” Journal of Financial Economics 36 (2): 193–224. doi:10.1016/0304-405X(94)90024-8.
  • Easterwood, John C., Anju Seth, and Ronald F. Singer. 1989. “The Impact of Leveraged Buyouts on Strategic Direction.” California Management Review 32 (1): 30–43. doi:10.2307/41166732.
  • Eccles, Robert G., Therése Lennehag, and Nina Nornholm. 2020. “EQT: Private Equity with a Purpose.” Journal of Applied Corporate Finance 32 (3): 73–86. doi:10.1111/jacf.12419.
  • Fama, Eugene F., and Michael C. Jensen. 1983. “Separation of Ownership and Control.” The Journal of Law & Economics 26 (2): 301–325. doi:10.1086/467037.
  • Farrell, Kathleen A., and David A. Whidbee. 2003. “Impact of Firm Performance Expectations on CEO Turnover and Replacement Decisions.” Journal of Accounting and Economics 36 (1–3): 165–196. doi:10.1016/j.jacceco.2003.09.001.
  • Ginsberg, Ari, and N. Venkatraman. 1985. “Contingency Perspectives of Organizational Strategy: A Critical Review of the Empirical Research.” Academy of Management Review 10 (3): 421–434. doi:10.5465/amr.1985.4278950.
  • Goergen, Marc, Noel O’Sullivan, and Geoffrey Wood. 2014a. “The Consequences of Private Equity Acquisitions for Employees: New Evidence on the Impact on Wages, Employment and Productivity.” Human Resource Management Journal 24 (2): 145–158. doi:10.1111/1748-8583.12032.
  • Goergen, Marc, Noel O’Sullivan, and Geoffrey Wood. 2014b. “The Employment Consequences of Private Equity Acquisitions: The Case of Institutional Buy Outs.” European Economic Review 71: 67–79. doi:10.1016/j.euroecorev.2014.06.015.
  • Gompers, Paul, Steven N. Kaplan, and Vladimir Mukharlyamov. 2016. “What Do Private Equity Firms Say They Do?” Journal of Financial Economics 121 (3): 449–476. doi:10.1016/j.jfineco.2016.06.003.
  • Gong, James Jianxin, and Wu. Steve Yuching. 2011. “CEO Turnover in Private Equity Sponsored Leveraged Buyouts.” Corporate Governance: An International Review 19 (3): 195–209. doi:10.1111/j.1467-8683.2010.00834.x.
  • Guo, Shourun, Edie S. Hotchkiss, and Weihong Song. 2011. “Do Buyouts (Still) Create Value?” The Journal of Finance 66 (2): 479–517. doi:10.1111/j.1540-6261.2010.01640.x.
  • Haarmeyer, David. 2020. “Private Equity and the COVID‐19 Economic Downturn: Opportunity for Expansion?” Journal of Applied Corporate Finance 32 (3): 87–91. doi:10.1111/jacf.12420.
  • Hammer, Benjamin, Alexander Knauer, Magnus Pflücke, and Bernhard Schwetzler. 2017. “Inorganic Growth Strategies and the Evolution of the Private Equity Business Model.” Journal of Corporate Finance 45: 31–63. doi:10.1016/j.jcorpfin.2017.04.006.
  • Harris, Richard, Tim Jenkinson, and Steven N. Kaplan. 2014. “Private Equity Performance: What Do We Know?” The Journal of Finance 69 (5): 1851–1882. doi:10.1111/jofi.12154.
  • Harris, Richard, Donald S. Siegel, and Mike Wright. 2005. “Assessing the Impact of Management Buyouts on Economic Efficiency: Plant-Level Evidence from the United Kingdom.” The Review of Economics and Statistics 87 (1): 148–153. doi:10.1162/0034653053327540.
  • Holthausen, Robert W., and David F. Larcker. 1996. “The Financial Performance of Reverse Leveraged Buyouts.” Journal of Financial Economics 42 (3): 293–332. doi:10.1016/0304-405X(96)00884-7.
  • Hongrui, Feng, and Ramesh P. Rao. 2022. “The Positive Externalities of Leveraged Buyouts.” Journal of Banking & Finance 135: 106360. February. doi:10.1016/j.jbankfin.2021.106360.
  • Indahl, Reynir, and Hannah Gunvor Jacobsen. 2019. “Private Equity 4.0: Using ESG to Create More Value with Less Risk.” Journal of Applied Corporate Finance 31 (2): 34–41. doi:10.1111/jacf.12344.
  • Jelic, Ranko, and Mike Wright. 2011. “Exits, Performance, and Late Stage Private Equity: The Case of UK Management Buy-Outs.” European Financial Management 17 (3): 560–593. doi:10.1111/j.1468-036X.2010.00588.x.
  • Jelic, Ranko, Dan Zhou, and Mike Wright. 2019. “Sustaining the Buyout Governance Model: Inside Secondary Management Buyout Boards.” British Journal of Management 30 (1): 30–52. doi:10.1111/1467-8551.12301.
  • Jensen, Michael C. 1989. “Eclipse of the Public Corporation.” Harvard Business Review Sept.-Oct. (October 1989): 239–252.
  • Kaplan, Steven N. 1989a. “Management Buyouts: Evidence on Taxes as a Source of Value.” The Journal of Finance 44 (3): 611–632. doi:10.1111/j.1540-6261.1989.tb04381.x.
  • Kaplan, Steven N. 1989b. “The Effects of Management Buyouts on Operating Performance and Value.” Journal of Financial Economics 24 (2): 217–254. doi:10.1016/0304-405X(89)90047-0.
  • Kaplan, Steven N., and Per Strömberg. 2009. “Leveraged Buyouts and Private Equity.” Journal of Economic Perspectives 23 (1): 121–146. doi:10.1257/jep.23.1.121.
  • Klein, Peter G., John L. Chapman, and Mario P. Mondelli. 2013. “Private Equity and Entrepreneurial Governance: Time for a Balanced View.” Academy of Management Perspectives 27 (1): 39–51. doi:10.5465/amp.2012.0132.
  • Landau, Christian, and Carolin Bock. 2013. “Value Creation Through Vertical Intervention of Corporate Centres in Single Business Units of Unrelated Diversified Portfolios - the Case of Private Equity Firms.” Long Range Planning 46 (1–2): 97–124. doi:10.1016/j.lrp.2012.11.002.
  • Large, David, and Steven Muegge. 2008. “Venture Capitalists’ Non-Financial Value-Added: An Evaluation of the Evidence and Implications for Research.” Venture Capital 10 (1): 21–53. doi:10.1080/13691060701605488.
  • Lerner, Josh, Morten Sorensen, and Per Strömberg. 2011. “Private Equity and Long-Run Investment: The Case of Innovation.” The Journal of Finance 66 (2): 445–477. doi:10.1111/j.1540-6261.2010.01639.x.
  • Lichtenberg, Frank R., and Donald Siegel. 1990. “The Effects of Leveraged Buyouts on Productivity and Related Aspects of Firm Behavior.” Journal of Financial Economics 27 (1): 165–194. doi:10.1016/0304-405X(90)90025-U.
  • Link, Albert N., Christopher J. Ruhm, and Donald S. Siegel. 2014. “Private Equity and the Innovation Strategies of Entrepreneurial Firms: Empirical Evidence from the Small Business Innovation Research Program.” Managerial and Decision Economics 35 (2): 103–113. doi:10.1002/mde.2648.
  • Long, William F., and David J. Ravenscraft. 1993. “Lbos, Debt and R&D Intensity.” Strategic Management Journal 14 (S1): 119–135. doi:10.1002/smj.4250140910.
  • Maas, Cornelius, Patrick Steinhagen, Dorian Proksch, and Andreas Pinkwart. 2020. “The Role of Innovation in Venture Capital and Private Equity Investments in Different Investment Phases.” Venture Capital 22 (1): 105–126. doi:10.1080/13691066.2018.1526864.
  • Macpherson, Allan, and Robin Holt. 2007. “Knowledge, Learning and Small Firm Growth: A Systematic Review of the Evidence.” Research Policy 36 (2): 172–192. doi:10.1016/j.respol.2006.10.001.
  • Magowan, Peter A. 1989. “The Case for Lbos: The Safeway Experience.” California Management Review 32 (1): 9–18. doi:10.2307/41166730.
  • Malamud, Rossi, Luiz Egydio, and Roy Martelanc. 2013. “An Analysis of the Management Practices of Brazilian Private Equity Firms and Their Impact on Company Performance.” Venture Capital 15 (2): 151–172. doi:10.1080/13691066.2013.802165.
  • Marcelo, Cerullo, Yu-Li Lin, Jose Alejandro Rauh-Hain, Vivian Ho, and Anaeze C. OffodilesII. 2022. “Financial Impacts and Operational Implications of Private Equity Acquisition of US Hospitals: Study Examines the Impacts and Operational Implications of Private Equity Acquisitions of US Hospitals.” Health Affairs 41 (4): 523–530. doi:10.1377/hlthaff.2021.01284.
  • Matthews, Gary, Mark Bye, and James Howland. 2009. “Operational Improvement: The Key to Value Creation in Private Equity.” Journal of Applied Corporate Finance 21 (3): 21–27. doi:10.1111/j.1745-6622.2009.00236.x.
  • McKinsey & Company. 2020. A New Decade for Private Markets: McKinsey Global Private Markets Review 2020. Washington, DC: McKinsey.
  • Meier, Degenhard, Tim Hiddemann, and Malte Brettel. 2006. “Post-Investment Value Addition to Buyouts — A Comparative Study on European Private Equity Firms.” Zeitschrift Für Betriebswirtschaft 76 (10): 1035–1066. doi:10.1007/s11573-006-0050-8.
  • Metrick, Andrew, and Ayako Yasuda. 2011. “Venture Capital and Other Private Equity: A Survey.” European Financial Management 17 (4): 619–654. doi:10.1111/j.1468-036X.2011.00606.x.
  • Meuleman, Miguel, Kevin Amess, Mike Wright, and Louise Scholes. 2009. “Agency, Strategic Entrepreneurship, and the Performance of Private Equity–backed Buyouts.” Entrepreneurship Theory and Practice 33 (1): 213–239. doi:10.1111/j.1540-6520.2008.00287.x.
  • Morris, Michael H., Pamela S. Lewis, and Donald L. Sexton. 1994. “Reconceptualizing Entrepreneurship: An Input-Output Perspective.” SAM Advanced Management Journal 59 (1): 21–31.
  • Muscarella, Chris J., and Michael R. Vetsuypens. 1990. “Efficiency and Organizational Structure: A Study of Reverse Lbos.” The Journal of Finance 45 (5): 1389–1413. doi:10.1111/j.1540-6261.1990.tb03720.x.
  • Nadant, Anne-Laure Le, and Frédéric Perdreau. 2014. “Ex-Post Innovation Profile of LBO Targets: Evidence from CIS Data for the Netherlands.” Strategic Change 23 (1–2): 93–105. doi:10.1002/jsc.1962.
  • Neil, Anderson, Peter Herriot, and Gerard P. Hodgkinson. 2001. “The Practitioner-Researcher Divide in Industrial, Work and Organizational (IWO) Psychology: Where are We Now, and Where Do We Go from Here?” Journal of Occupational and Organizational Psychology 74 (4): 391–411. doi:10.1348/096317901167451.
  • Nikoskelainen, Erkki, and Mike Wright. 2007. “The Impact of Corporate Governance Mechanisms on Value Increase in Leveraged Buyouts.” Journal of Corporate Finance 13 (4): 511–537. doi:10.1016/j.jcorpfin.2007.04.002.
  • Nisar, Tahir M., Niraj Kumar, and Guru Prabhakar. 2019. “Effect of Best Management Practices on the Performance and Productivity of Small Firms.” Production Planning and Control 30 (10–12): 919–934. doi:10.1080/09537287.2019.1582100.
  • Olsson, Martin, and Joacim Tåg. 2017. “Private Equity, Layoffs, and Job Polarization.” Journal of Labor Economics 35 (3): 697–754. doi:10.1086/690712.
  • Page, Beau. 2011. “CEO Ownership and Firm Value: Evidence from a Structural Estimation.” Unpublished Working Paper, University of Rochester.
  • Palcic, Dónal, and Eoin Reeves. 2013. “Private Equity Leveraged Buyouts in European Telecoms: The Case of Eircom.” Telecommunications Policy 37 (6–7): 573–582. doi:10.1016/j.telpol.2013.01.001.
  • Palepu, Krishna G. 1990. “Consequences of Leveraged Buyouts.” Journal of Financial Economics 27 (1): 247–262. doi:10.1016/0304-405X(90)90028-X.
  • Parthasarthy, Raghavan, and Jan Hammond. 2002. “Product Innovation Input and Outcome: Moderating Effects of the Innovation Process.” Journal of Engineering and Technology Management - JET-M 19 (1): 75–91.
  • Pe’Er, Aviad, and Oliver Gottschalg. 2011. “Red and Blue: The Relationship Between the Institutional Context and the Performance of Leveraged Buyout Investments.” Strategic Management Journal 32 (12): 1356–1367. doi:10.1002/smj.934.
  • Phan, Phillip H., and Charles W. L. Hill. 1995. “Organizational Restructuring and Economic Performance in Leveraged Buyouts: An Ex Post Study.” Academy of Management Journal 38 (3): 704–739.
  • Puche, Benjamin, Reiner Braun, and Ann‐kristin Achleitner. 2015. “International Evidence on Value Creation in Private Equity Transactions.” Journal of Applied Corporate Finance 27 (4): 105–122. doi:10.1111/jacf.12152.
  • Rappaport, A. 1990. “The Staying Power of the Public Corporation.” Harvard Business Review 68 (1): 96–104. 10103814.
  • Renneboog, Luc, Tomas Simons, and Mike Wright. 2007. “Why Do Public Firms Go Private in the UK? The Impact of Private Equity Investors, Incentive Realignment and Undervaluation.” Journal of Corporate Finance 13 (4): 591–628. doi:10.1016/j.jcorpfin.2007.04.005.
  • Robbie, Ken, Steve Thompson, and Mike Wright. 1991. “Managerial Buyouts, Incentives and Performance.” Business Strategy Review 2 (1): 71–83. doi:10.1111/j.1467-8616.1991.tb00148.x.
  • Roberts, Steve, and Elena Naydenova. 2020. Private Equity Trend Report 2020, 1–88. PricewaterhouseCoopers GmbH.
  • Rodrigues, Suzana B., and John Child. 2010. “Private Equity, the Minimalist Organization and the Quality of Employment Relations.” Human Relations 63 (9): 1321–1342. doi:10.1177/0018726709353637.
  • Rogers, Paul, Tom Holland, and Dan Haas. 2002. “Value Acceleration: Lessons from Private-Equity Masters.” Harvard Business Review 80 (6): 94–101.
  • Scellato, Giuseppe, and Elisa Ughetto. 2013. “Real Effects of Private Equity Investments: Evidence from European Buyouts.” Journal of Business Research 66 (12): 2642–2649. doi:10.1016/j.jbusres.2012.06.001.
  • Seth, Anju, and John Easterwood. 1993. “Strategic Redirection in Large Management Buyouts: The Evidence from Post‐buyout Restructuring Activity.” Strategic Management Journal 14 (4): 251–273. doi:10.1002/smj.4250140403.
  • Singh, Harbir. 1990. “Management Buyouts : Distinguishing Characteristics and Operating Changes Prior to Public Offering.” Strategic Management Journal 11: 111–129.
  • Smith, Abbie J. 1990. “Corporate Ownership Structure Performance the Case of Management.” Journal of Financial Economics 27: 143–164. doi:10.1016/0304-405X(90)90024-T.
  • Söffge, Fabian, and Reiner Braun. 2018. “Buyout Transactions in the German-Speaking Region: Determinants of Abnormal Performance and Unlevered Returns.” Journal of Applied Corporate Finance 30 (2): 50–64. doi:10.1111/jacf.12300.
  • Stabell, Charles B., and Øystein D. Fjeldstad. 1998. “Configuring Value for Competitive Advantage: On Chains, Shops, and Networks.” Strategic Management Journal 19 (5): 413–437. doi:10.1002/(SICI)1097-0266(199805)19:5<413:AID-SMJ946>3.0.CO;2-C.
  • Stevenot, Anne, Loris Guery, Geoffrey Wood, and Chris Brewster. 2018. “Country of Origin Effects and New Financial Actors: Private Equity Investment and Work and Employment Practices of French Firms.” British Journal of Industrial Relations 56 (4): 859–881. doi:10.1111/bjir.12284.
  • Thompson, Steve, Mike Wright, and Ken Robbie. 1992. “Buy-Outs, Divestment, and Leverage: Restructuring Transactions and Corporate Governance.” Oxford Review of Economic Policy 8 (3): 58–69. doi:10.1093/oxrep/8.3.58.
  • Tranfield, David, David Denyer, and Palminder Smart. 2003. “Towards a Methodology for Developing Evidence-Informed Management Knowledge by Means of Systematic Review.” British Journal of Management 14 (3): 207–222. doi:10.1111/1467-8551.00375.
  • Tykvová, Tereza. 2018. “Venture Capital and Private Equity Financing: An Overview of Recent Literature and an Agenda for Future Research.” Journal of Business Economics 88 (3–4): 325–362. doi:10.1007/s11573-017-0874-4.
  • Ughetto, Elisa. 2010. “Assessing the Contribution to Innovation of Private Equity Investors: A Study on European Buyouts.” Research Policy 39 (1): 126–140. doi:10.1016/j.respol.2009.11.009.
  • Valkama, Petri, Markku Maula, Erkki Nikoskelainen, and Mike Wright. 2013. “Drivers of Holding Period Firm-Level Returns in Private Equity-Backed Buyouts.” Journal of Banking and Finance 37 (7): 2378–2391. doi:10.1016/j.jbankfin.2013.01.042.
  • Verm, Kiran. 1993. “Managerial Efficiency : A Study of Management Buyouts *.” Contemporary Accounting Research 10 (1): 179–204.
  • Wang, Chong. 2010. “Does the Monitoring Role of Buyout Houses Improve Discretionary Accruals Quality?” Accounting and Finance 50 (4): 993–1012. doi:10.1111/j.1467-629X.2010.00351.x.
  • Weir, Charlie, Peter Jones, and Mike Wright. 2015. “Public to Private Transactions, Private Equity and Financial Health in the UK: An Empirical Analysis of the Impact of Going Private.” Journal of Management and Governance 19 (1): 91–112. doi:10.1007/s10997-013-9270-9.
  • Westcott, Mark, and Andrew Pendleton. 2013. “Private Equity and Labour Management in Australia: The Case of Myer.” Journal of Industrial Relations 55 (5): 723–742. doi:10.1177/0022185613491682.
  • Wiersema Margarethe F, and Liebeskind J Porter. 1995. The effects of leveraged buyouts on corporate growth and diversification in large firms. Strategic Management Journal 16 (6): 447–460. doi:10.1002/smj.4250160604
  • Wilson, Nick, Mike Wright, Donald S. Siegel, and Louise Scholes. 2012. “Private Equity Portfolio Company Performance During the Global Recession.” Journal of Corporate Finance 18 (1): 193–205. doi:10.1016/j.jcorpfin.2011.11.008.
  • Wright, Mike, Nicolas Bacon, and Kevin Amess. 2009. “The Impact of Private Equity and Buyouts on Employment, Remuneration and Other HRM Practices.” Journal of Industrial Relations 51 (4): 501–515. doi:10.1177/0022185609339515.
  • Wright, Mike, Robert Cressy, Nick Wilson, and Hisham Farag. 2014. “Financial Restructuring and Recovery in Private Equity Buyouts: The UK Evidence.” Venture Capital 16 (2): 109–129. doi:10.1080/13691066.2013.863065.
  • Wright, Mike, John Gilligan, and Kevin Amess. 2009. “The Economic Impact of Private Equity: What We Know and What We Would Like to Know.” Venture Capital 11 (1): 1–21. doi:10.1080/13691060802151887.
  • Wright, Mike, Robert E. Hoskisson, and Lowell W. Busenitz. 2009. “Rebirth : As Buyouts Strategic Facilitators of Growth Entrepreneurship and.” The Academy of Management Executive 15 (1): 111–125.
  • Wright, Mike, Robert E. Hoskisson, Lowell W. Busenitz, and Jay Dial. 2000. “Entrepreneurial Growth Through Privatization: The Upside of Management Buyouts.” Academy of Management Review 25 (3): 591–601. doi:10.2307/259312.
  • Wright, Mike, Sarika Pruthi, Kevin Amess, and Yan Alperovych. 2019. “Private Equity: Where We Have Been and the Road Ahead.” Venture Capital 21 (1): 51–64. doi:10.1080/13691066.2018.1518665.
  • Wright, Mike, Steve Thompson, and Ken Robbie. 1992. “Venture Capital and Management-Led, Leveraged Buy-Outs: A European Perspective.” Journal of Business Venturing 7 (1): 47–71. doi:10.1016/0883-9026(92)90034-O.
  • Wright, Mike, Steve Thompson, Ken Robbie, and Pauline Wong. 1995. “Management Buy‐outs in the Short and Long Term.” Journal of Business Finance & Accounting 22 (4): 461–482. doi:10.1111/j.1468-5957.1995.tb00372.x.
  • Wright, Mike, Nick Wilson, John Gilligan, Nick Bacon, and Kevin Amess. 2016. “Brexit, Private Equity and Management.” British Journal of Management 27 (4): 682–686. doi:10.1111/1467-8551.12191.
  • Yeh, Tsung‐ming. 2012. “Do Private Equity Funds Increase Firm Value? Evidence from Japanese Leveraged Buyouts.” Journal of Applied Corporate Finance 24 (4): 112–128. doi:10.1111/j.1745-6622.2012.00405.x.
  • Zaccone, Maria Cristina, and Matteo Pedrini. 2020. “ESG Factor Integration into Private Equity.” Sustainability 12 (14): 1–15. doi:10.3390/su12145725.
  • Zahra, Shaker A. 1995. “Corporate Entrepreneurship and Financial Performance: The Case of Management Leveraged Buyouts.” Journal of Business Venturing 10 (3): 225–247. doi:10.1016/0883-9026(94)00024-O.
  • Zhou, D., R. Jelic, and M. Wright. 2014. “Smbos: Buying Time or Improving Performance?” Managerial and Decision Economics 35 (2): 88–102. doi:10.1002/mde.2651.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.