English
Deutsch
Log In
Email address
Password
Log-in (only for Administrators)
or
Login with HSG credentials
Research Outputs
Projects
People
Statistics
English
Deutsch
Log In
Email address
Password
Log-in (only for Administrators)
or
Login with HSG credentials
Home
HSG CRIS
HSG Publications
Do Private Equity Owners Increase Risk of Financial Distress and Bankruptcy?
Export
Statistics
Options
Do Private Equity Owners Increase Risk of Financial Distress and Bankruptcy?
Journal
Journal of Corporate Finance
Type
journal article
Date Issued
2012
Author(s)
Tykvova, Tereza
Borell, M.
DOI
10.1016/j.jcorpfin.2011.11.004
Abstract (De)
© 2011 Elsevier B.V. In this study, we investigate financial distress risks of European companies around the buyout event in the period between 2000 and 2008. In addition, we analyze whether buyout companies go bankrupt more often than comparable non-buyout companies. Our results suggest that private equity investors select companies which are less financially distressed than comparable non-buyout companies and that the distress risk increases after the buyout. Despite this increase, private equity-backed companies do not suffer from higher bankruptcy rates than comparable non-buyout companies. In fact, when companies are backed by experienced private equity funds, their bankruptcy rates are even lower. These findings indicate that experienced investors are better able to manage distress risks than their inexperienced counterparts.
Language
English
HSG Classification
contribution to scientific community
HSG Profile Area
SOF - System-wide Risk in the Financial System
Refereed
Yes
Volume
18
Start page
138
End page
150
Pages
12
Official URL
https://www.sciencedirect.com/science/article/pii/S0929119911001210?via%3Dihub
URL
https://www.alexandria.unisg.ch/handle/20.500.14171/92960
Subject(s)
economics
business studies
finance
Division(s)
s/bf - Swiss Institut...
Eprints ID
259431
File(s)
1-s2.0-S0929119911001210-main.pdf (549.47 KB)