Corporate Governance and Value Creation: Evidence from Private Equity

ArXiv ID: ssrn-1324016 “View on arXiv”

Authors: Unknown

Abstract

We examine deal-level data from 395 private equity transactions in Western Europe initiated by large private equity houses during the period 1991 to 2007. We un

Keywords: private equity, deal-level data, Western Europe, transactions, LBO, Private Equity

Complexity vs Empirical Score

• Math Complexity: 3.5/10
• Empirical Rigor: 8.0/10
• Quadrant: Street Traders
• Why: The paper relies heavily on deal-level regression analysis and statistical inference but with relatively accessible econometric models rather than advanced mathematics. The empirical design is robust, using 395 transactions over 16 years with detailed private equity data, suggesting strong backtest readiness.

  flowchart TD
    A["Research Goal<br>How does Private Equity create value?"] --> B["Data: 395 LBOs<br>Western Europe 1991-2007"]
    B --> C["Methodology<br>Deal-level regression analysis"]
    C --> D{"Computation<br>Operational vs. Financial Drivers"}
    D --> E["Outcome 1: <br>Operating improvements primary"]
    D --> F["Outcome 2: <br>Limited financial engineering"]
    D --> G["Outcome 3: <br>Timing & multiples key"]</parameter>