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The Effects of Private Equity-Backing in the European Acquisitions of Unlisted Companies

dc.contributor.authorJoly, Vanessa
dc.date.accessioned2011-04-04T14:00:13Z
dc.date.available2011-04-04T14:00:13Z
dc.date.issued2010
dc.identifier.urihttps://basepub.dauphine.fr/handle/123456789/5889
dc.description.abstractfrUsing a sample of acquisitions of unlisted firms completed by public companies from 17 Western European countries over the period 2003-2008, this study investigates whether private equity (PE)-backing of acquired firms has an impact on announcement period abnormal returns to acquirers. 12.5% of the unlisted targets are PE-backed. Acquisitions of PE-backed firms are more likely to involve larger acquirers, larger targets relative to acquirer size, and high-tech targets; they are more likely to occur in an unrelated industry and to be partially stock-financed. Of most importance for this study, I find that the presence of PE investors in the targets leads to significantly lower acquirer announcement returns. This effect remains after controlling for a large set of deal and acquirer characteristics. Moreover, these results are robust to the use of a propensity score matching method on multiple deal characteristics and suggest that PE investors increase the negotiating power of target shareholders.en
dc.language.isoenen
dc.subjectPrivate Equityen
dc.subjectAcquisitionsen
dc.subjectAcquirer Returnsen
dc.subjectUnlisted Targetsen
dc.subject.ddc332en
dc.subject.classificationjelG34en
dc.subject.classificationjelG24en
dc.titleThe Effects of Private Equity-Backing in the European Acquisitions of Unlisted Companiesen
dc.typeCommunication / Conférence
dc.identifier.citationpages34en
dc.description.sponsorshipprivateouien
dc.subject.ddclabelEconomie financièreen
dc.relation.conftitle2010 FMA Annual Meetingen
dc.relation.confdate2010-10
dc.relation.confcityNew Yorken
dc.relation.confcountryÉtats-Unisen


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