Cross-border Buyout Performance

46 Pages Posted: 8 Apr 2019

See all articles by Siyang Tian

Siyang Tian

City University London - Sir John Cass Business School

Anh L. Tran

Cass Business School, City University London

Date Written: March 26, 2019

Abstract

Using a novel dataset of 2,639 cross-border buyout investments during 1998-2007 in 38 countries, we find that the institutional quality of the portfolio company country, as measured by the ranking in the composite index of political, economic and financial risk, is an important determinant of cross-border buyout performance in terms of exit success. The higher the institutional quality of the portfolio company country, the higher the probability of a successful exit via IPO or M&A. PE firms’ international experience, industrial experience, and reputation based on deal experience help to improve buyout exit success and their industrial experience could mitigate the adverse influence of institutional distance between the portfolio company and the PE firm countries.

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

JEL Classification: G34

Suggested Citation

Tian, Siyang and Tran, Anh L., Cross-border Buyout Performance (March 26, 2019). Available at SSRN: https://ssrn.com/abstract=3360315 or http://dx.doi.org/10.2139/ssrn.3360315

Siyang Tian

City University London - Sir John Cass Business School ( email )

106 Bunhill Row
London, EC1Y 8TZ
United Kingdom

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
26
Abstract Views
312
PlumX Metrics