Tentative JWB-submission 3rd RR BH TR LO.pdf (829.62 kB)
The institutional determinants of private equity involvement in business groups – the case of Africa
journal contribution
posted on 2023-06-09, 03:45 authored by Bruce Hearn, Trond Randøy, Lars OxelheimThis study examines the governance attributes of post-IPO (initial public offering) retained ownership of private equity in business group constituent firms in contrast to their unaffiliated counterparts, in 202 newly listed firms in 22 emerging African economies. We adopt an actor centered institutional-theoretic perspective in rationalizing institutional voids and the advantages of maintained governance by both business angels (BA) and venture capital (VC) private equity. Our findings reveal private equity retain higher post-IPO ownership in business group constituents compared to unaffiliated firms and that this is inversely moderated in the context of improving institutional quality – where this is particularly strong in case of foreign VC as opposed to domestic VC or BA. Our result adds to the literature on multifocal corporate governance mechanisms and the institutional determinants of private equity investment.
History
Publication status
- Published
File Version
- Accepted version
Journal
Journal of World BusinessISSN
1090-9516Publisher
ElsevierExternal DOI
Issue
2Volume
53Page range
118-133Department affiliated with
- Accounting and Finance Publications
Research groups affiliated with
- Business and Finance Research Group Publications
Full text available
- Yes
Peer reviewed?
- Yes
Legacy Posted Date
2016-10-26First Open Access (FOA) Date
2017-08-27First Compliant Deposit (FCD) Date
2016-10-26Usage metrics
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