6533b860fe1ef96bd12c2f11
RESEARCH PRODUCT
The Institutional Determinants of Private Equity Involvement in Business Groups The Case of Africa
Trond RandøyLars OxelheimLars OxelheimLars OxelheimBruce HearnBruce Hearnsubject
Private equity fundFinancePrivate equitybusiness.industryCorporate governancePrivate equity secondary marketEconomicsAccountingPrivate equity firmVenture capitalbusinessEquity capital marketsClub dealdescription
This study examines the governance attributes of post-IPO (initial public offering) retained ownership of private equity in business group constituent firms in contrast to their unaffiliated counterparts, in 202 newly listed firms in 22 emerging African economies. We adopt an actor centered institutional-theoretic perspective in rationalizing institutional voids and the advantages of maintained governance by both business angels (BA) and venture capital (VC) private equity. Our findings reveal private equity retain higher post-IPO ownership in business group constituents compared to unaffiliated firms and that this is inversely moderated in the context of improving institutional quality. Our result adds to the literature on multifocal corporate governance mechanisms.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2015-01-01 | SSRN Electronic Journal |