Title Private equity’s value addition through business integration: an event study approach /
Authors Mota Salinos, Gustavo Adolfo
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Is Part of VU EF studentų mokslinės draugijos konferencijos straipsnių rinkinys, 2016.. Vilnius : Vilniaus universiteto leidykla. 2017, p. 12-24.. ISSN 2538-7421. eISSN 2538-743X
Keywords [eng] Private equity ; business integration ; an event study
Abstract [eng] Private equity has become one of the main and most active participants in the recent growing economy; studies over it have usually found relation with economic growth, business integration and development in deals such as mergers, acquisitions, internal growth processes and buyouts. Nevertheless, the results and effects of this processes have been also doubted and criticized. The motive that made the research necessary was to study, analyse and provide empirical evidence on the effects of private equity in business integration. To achieve this, concepts and previous researches are reviewed and described. The base of empirical set is market efficiency assumption where prices of stock reflects information available, therefore an event study methodology is used to track the effect and measure the value addition from 26 private equity-backed exits to public market in 2015 and 2016. Cumulative average abnormal returns are measured under different time windows to prove hypothesis of statistically significant difference before and after de deal announcement. The results show evidence of abnormal returns before after the deal announcement. Limitations and recommendations for future investigations are also mentioned in the research.
Published Vilnius : Vilniaus universiteto leidykla
Type Conference paper
Language English
Publication date 2017