Strategic Management Journal Vol. 37 No. 2 2016
Does ownership matter in private equity? The sources of variance in buyouts' performance
Abstract
We study the impact of ownership on firm performance in an unexplored governance context: private equity ( PE ) firms and the buyouts in which they invest. We employ a multiple‐membership, cross‐classified, multilevel model on a unique database of 6,950 buyouts realized by 255 PE firms between 1973 and 2008 in 77 countries. The results document a significant PE firm effect (4.6%), the importance of which grows as time passes. We then study three contingencies that increase the importance of the PE firm effect: (1) value addition vs. selection strategies; (2) developed vs. emerging economies; and (3) economic downturns. Our findings shed new light on the sources of variance in buyouts' performance .
- DOI
- 10.1002/smj.2336
- Volume
- 37
- Issue
- 2
- Pages
- 330-348
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref