Private Equity Returns and Disclosure Around the World
Journal of International Business Studies, 2009
European Economic Association (EEA), 2004
43 Pages Posted: 6 Apr 2009 Last revised: 15 Apr 2009
There are 2 versions of this paper
Private Equity Returns and Disclosure Around the World
Date Written: March 30, 2004
Abstract
To obtain more funds from the institutional investors, private equity fund managers may report inflated valuations of private investee companies that are not yet sold. However, such overvaluations may result in a reputational cost when those investments are realized. Using evidence from 39 countries, we show that there are significant systematic biases in managers' reporting of fund performance. We find that these biases depend on the accounting and legal environment in a country, and on proxies for the degree of information asymmetry between institutional investors and private equity fund managers.
Keywords: International Financial Reporting, Private Equity and Portfolio Diversification, Venture Capital
JEL Classification: G24, G28, G31, G32, G35
Suggested Citation: Suggested Citation
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