Meuleman, M, Wilson, N orcid.org/0000-0001-5250-9894, Wright, M et al. (1 more author) (2022) When the going gets tough: Private equity firms’ role as agents and the resolution of financial distress in buyouts. Journal of Small Business Management, 60 (3). pp. 513-540. ISSN 0047-2778
Abstract
Previous research has focused on a private equity (PE) firm’s role as principal in its relationship with an investee, but few studies have looked into their role as agents for their investors. We examine how a PE firm’s relationship as agent for limited partners (LPs) and banks influences its incentives to resolve financial distress in the investee. We examine the effect of PE fundraising reputation, PE fundraising activity, and PE bank affiliation on the likelihood of a financially distressed buyout ending in bankruptcy. We build a unique data set of 338 distressed buyouts in the United Kingdom to test our hypotheses.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2020 International Council for Small Business. This is an author produced version of an article published in Journal of Small Business Management. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | agency theory; buyouts; distress; Private equity; signaling theory |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Accounting & Finance Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 17 Apr 2020 11:01 |
Last Modified: | 04 Jul 2022 14:47 |
Status: | Published |
Publisher: | Taylor & Francis |
Identification Number: | 10.1080/00472778.2020.1717242 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:159507 |