Cross-border Buyout Performance

49 Pages Posted: 8 Apr 2019 Last revised: 8 Jan 2021

See all articles by Siyang Tian

Siyang Tian

Southwestern University of Finance and Economics (SWUFE)

Anh L. Tran

Cass Business School, City University London

Date Written: July 15, 2020

Abstract

This paper examines the importance of institutional quality in cross-border buyout performance. Using 2,639 cross-border buyout investments during 1998-2007 in 38 countries, we find that the higher the institutional quality of the country where the portfolio company is located, the higher the probability of a successful exit via IPO or M&A. The larger the institutional distance between the portfolio company country and the private equity (PE) firm country, the lower the exit success while PE firms’ international experience, industrial experience, and reputation help improve exit success. Further, their industrial experience and the launch of the local office mitigate the adverse influence of institutional distance.

Keywords: LBOs, private equity, cross-border, law and finance

JEL Classification: G34

Suggested Citation

Tian, Siyang and Tran, Anh L., Cross-border Buyout Performance (July 15, 2020). Available at SSRN: https://ssrn.com/abstract=3360315 or http://dx.doi.org/10.2139/ssrn.3360315

Siyang Tian

Southwestern University of Finance and Economics (SWUFE) ( email )

55 Guanghuacun St,
Chengdu, Sichuan 610074
China

Anh L. Tran (Contact Author)

Cass Business School, City University London ( email )

106 Bunhill Row
London, EC1Y 8TZ
United Kingdom
+44-207-040-5109 (Phone)
+44-207-040-8881 (Fax)

HOME PAGE: http://https://www.cass.city.ac.uk/faculties-and-research/experts/anh-tran

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
47
Abstract Views
542
PlumX Metrics