Private Equity, Leveraged Buyouts and Governance

Abstract

This paper provides an overview of the literature on private equity and leveraged buyouts, focusing on global evidence related to both governance and returns to private equity and leveraged buyouts. We distinguish between financial and real returns to this activity, where the latter refers to productivity and broader performance measures. We also outline a research agenda on this topic.

Keywords: management buyouts, private equity, total factor productivity, financial and real returns, corporate governance

JEL Classification: G34, G32