Economics of buyouts / Alexander Belyakov.

Format:

Book

Thesis/Dissertation

Author/Creator:

Belyakov, Alexander, author.

Contributor:

Yilmaz, Bilge, 1968- degree supervisor.

University of Pennsylvania. Department of Finance, degree granting institution.

Language:

English

Subjects (All):

Finance.

Finance--Penn dissertations.

Penn dissertations--Finance.

Local Subjects:

Finance.

Finance--Penn dissertations.

Penn dissertations--Finance.

Genre:

Academic theses.

Physical Description:

1 online resource (171 pages)

Contained In:

Dissertations Abstracts International 82-11A.

Place of Publication:

[Philadelphia, Pennsylvania] : University of Pennsylvania ; Ann Arbor : ProQuest Dissertations & Theses, 2021.

Language Note:

English

System Details:

Mode of access: World Wide Web.

text file

Summary:

This dissertation consists of three parts. The first two, while answering important questions about investment and capital structure in their own right, develop key elements to the model that is used in the final part of the paper that addresses the main question of my work at Wharton - how private equity (PE) firms create value. Empirical analysis of a sample of companies with PE ownership in the UK shows that PE firms act as deep-pocket investors for their portfolio companies, rescuing them if they fall in financial distress. In contrast, external financing is expensive for companies without PE- ownership in financial distress. The paper builds a model that shows how companies form rational expectations about the costs of financial distress, and how these expectations affect ex-ante policies. The model explains the empirically-observed differences in how companies with and without PE-ownership invest, pay dividends, and issue debt. In particular, the model quantitatively explains the difference in leverage of companies with and without PE-ownership. The model shows that greater tax-shield benefits and superior growth of PE-backed companies can explain 6.4% of the abnormal return of PE firms. The conclusion that follows from the paper, however, is that abnormal returns PE firms cannot be replicated by other investors.

Notes:

Source: Dissertations Abstracts International, Volume: 82-11, Section: A.

Advisors: Yilmaz, Bilge; Committee members: Joao Gomes; Nikolai Roussanov; Amir Yaron.

Department: Finance.

Ph.D. University of Pennsylvania 2021.

Local Notes:

School code: 0175

ISBN:

9798738618406

Access Restriction:

Restricted for use by site license.

This item must not be sold to any third party vendors.