股权投资决定因素PrivateEquityintheDevelopingWorldTheDeterminantsofTransactionStructures.pptVIP

Private Equity in the Developing World: The Determinants of Transaction Structures Josh Lerner, Harvard and Antoinette Schoar, MIT Motivation Lots of attention in “law and finance” literature to how legal regime affects financial transactions Largely focused on public markets But actually public markets quite modest in most LDCs Dynamics of public and private transactions may be very different This paper Looks at contracting choices by private firms: Impact of legal regime and stage of development on: Type of transactions Outcomes of transactions (size and valuation) Alternative view: parties may be able to contract around Johnson, McMillan, and Woodruff (2002) Looks at private equity Small subset of private contracts, but: Well-documented Reasonably standardized approach Seems a reasonable testing ground Another motivation Flow of private equity funds into developing countries have been decreasing during the late 1990s: Returns have been mixed Development agencies that invest in private equity funds have had poor returns Capital flows mimic the U.S. private equity cycle Developing nation private equity fundraising Developing nation share of global private equity funds Questions How does private equity contracting vary between developing countries and the U.S.? Can we identify impediments to private equity contracting in these countries? What determines cross sectional variation in contract structure? Legal and contracting environment Differences between domestic private equity investors and foreign groups Key findings In sample of 210 transactions: Dramatically different securities employed Legal origins, rule of law, and judicial efficiency matter in explaining contract structure While U.S. and U.K.-based groups use more U.S.-style deals, they also “go local” Appears to matter as well for deal outcomes Related literature Large literature in law and finance studies financial structures across countries La Porta, Lopez-de-Silanes, Shleifer and Vishny (1997, 1998)