Determinants of Cross-Border Syndication: Cultural Barriers, Legal Context, and Learning

Abstract:     
Private equity (PE) has become an increasingly international phenomenon but there is a lack of research that looks at the process by which PE firms invest across borders. We aim to fill this gap in the literature by examining the role of cultural distance, legal context and organizational learning as determinants of cross-border private equity syndication. We examine these issues by studying the international expansion by later-stage UK PE investors into continental Europe over the period 1990 to 2005. Our results indicate that legal context and organizational learning are significantly related to the use of cross-border syndicates. Implications for theory and practice are suggested.

Number of Pages in PDF File: 14

Keywords: Entrepreneurship

JEL Classification: M13

Accepted Paper Series