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Corporate Governance and Value Creation: Evidence from Private Equity

Corporate Governance and Value Creation: Evidence from Private Equity ArXiv ID: ssrn-1372562 “View on arXiv” Authors: Unknown Abstract We examine deal-level data on private equity transactions in the UK initiated during the period 1996 to 2004 by mature private equity houses. We un-lever the de Keywords: Private Equity, Deal-level data, Unlevered returns, UK market, Mature private equity houses, Private Equity Complexity vs Empirical Score Math Complexity: 2.5/10 Empirical Rigor: 8.0/10 Quadrant: Street Traders Why: The paper relies on real-world private equity deal data and standard econometric regression, with no advanced mathematics, making it highly empirical and practical for market application. flowchart TD A["Research Question: Does corporate governance<br>create value in Private Equity?"] --> B{"Key Methodology"} B --> C["Unlevered Deal-Level Analysis"] C --> D["Data: UK PE deals 1996-2004<br>Mature PE houses"] D --> E["Compute Unlevered Returns<br>Remove debt effects"] E --> F["Regression Analysis<br>Control for deal characteristics"] F --> G["Findings: Governance drives<br>unlevered value creation"]

April 7, 2009 · 1 min · Research Team

Corporate Governance and Value Creation: Evidence from Private Equity

Corporate Governance and Value Creation: Evidence from Private Equity ArXiv ID: ssrn-1354519 “View on arXiv” Authors: Unknown Abstract We examine deal-level data on private equity transactions in the UK initiated during the period 1996 to 2004 by mature private equity houses. We un-lever the de Keywords: Private Equity, Deal-level data, Unlevered returns, UK market, Mature private equity houses, Private Equity Complexity vs Empirical Score Math Complexity: 3.0/10 Empirical Rigor: 7.5/10 Quadrant: Street Traders Why: The paper is based on an analysis of real-world private equity deal-level data, requiring robust data collection, cleaning, and econometric methods, but its mathematical content appears to be applied regression and statistical analysis rather than heavy theoretical derivations. flowchart TD A["Research Question: Does corporate governance improve<br/>private equity value creation?"] --> B["Dataset & Inputs"] B --> C["Methodology & Computation"] C --> D["Key Findings"] B["Dataset & Inputs"] --> B1["UK PE transactions (1996-2004)"] B --> B2["Mature PE houses only"] B --> B3["Deal-level financial data"] C["Methodology & Computation"] --> C1["Calculate unlevered returns<br/>(removing leverage effects)"] C1 --> C2["Analyze governance impact<br/>on operating performance"] C2 --> C3["Regression analysis<br/>controlling for deal characteristics"] D["Key Findings"] --> D1["Governance adds value<br/>post-acquisition"] D --> D2["Operational improvements<br/>drive returns over financial engineering"] D --> D3["Mature PE houses show<br/>stronger governance impact"]

March 9, 2009 · 1 min · Research Team