Private equity returns and disclosure around the world

• 成果类型: Article
• 署名作者: Cumming, Douglas; Walz, Uwe
• 署名单位: York University - Canada; Goethe University Frankfurt
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/jibs.2009.62
• 发表日期: 2010
• 页码: 727-754
• 关键词: international financial reporting; private equity and portfolio diversification; venture capital

摘要

To obtain more funds from the institutional investors, private equity (PE) fund managers may report inflated valuations of private investee companies that are not yet sold. However, such overvaluations may result in a reputational cost when those investments are realized. Using evidence from 39 countries, we show that there are significant systematic biases in managers' reporting of fund performance. We find that these biases depend on the accounting and legal environment in a country, and on proxies for the degree of information asymmetry between institutional investors and PE fund managers. Journal of International Business Studies (2010) 41, 727-754. doi:10.1057/jibs.2009.62