Advances in Economics, Management and Political Sciences

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Proceedings of the 7th International Conference on Economic Management and Green Development

Series Vol. 32 , 10 November 2023


Open Access | Article

Private Equity and LBOs: An Efficient Investment Tool Needing Regulation

Xinying Chen * 1
1 ShanTou University

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 32, 49-55
Published 10 November 2023. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Xinying Chen. Private Equity and LBOs: An Efficient Investment Tool Needing Regulation. AEMPS (2023) Vol. 32: 49-55. DOI: 10.54254/2754-1169/32/20231565.

Abstract

Private equity funds are becoming more and more significant in the national economy and their role in the development of a country's economy has become increasingly important as a promising new financial draw in the global financial markets in recent years. Private equity firms were established in the US and expanded quickly behind the decade's brisk economic growth. This paper analyzes the pros and cons of private equity and leveraged buyouts, combining case studies, the legal basis and experience of various countries and government regulation, to discuss the problems of private equity investment, clarify the responsibilities of the government, improve relevant laws and regulations, and encourage the private equity market's growth.

Keywords

private equity funds, investment, government regulation, leveraged buyouts

References

1. Steven N. kaplan and per stromberg. (2009) Leveraged buyouts and private equity. The Journal of Economic Perspectives, 23(1), 121-146.

2. Acharya, Viral, Julian Franks, and Henri Servaes. (2007) Private Equity-Boom or Bust. Journal of Applied Corporate Finance, 19(4),44-53.

3. Ivashina, Victoria, and Anna Kovner. (2008) The Private Equity Advantage: Leveraged Buyout Firms and Relationship Banking.

4. Bergstrom, Clas, Michael Grubb, and Sara Jonsson. (2007) The Operating Impact of Buyouts in Sweden: A Study of Value Creation. Journal of Private Equity, 11(1), 22-39.

5. public-vs-private-markets-global-private-equity-report-2020

6. Viral V. Acharya, Oliver F. Gottschalg, Moritz Hahn, Conor Kehoe. (2013) Corporate Governance and Value Creation: Evidence from Private Equity. The Review of Financial Studies, 26(2), 368-402.

7. Arman Kosedag, David Michayluk. (2004) Repeated LBOs: The Case of Multiple LBO Transactions. Quarterly Journal of Business and Economics, 43(2), 111-122.

8. Josh Lerner, Morten Sorensen, Per Stromberg. (2011) Private Equity and Long-Run Investment: The Case of Innovation. The Journal of Finance, 66(2), 445-477.

9. Ulf Axelson, Tim Jenkinson, Per Stromberg, Michael S. Weisbach. (2013) "Borrow Cheap, Buy High? The Determinants of Leverage and Pricing in Buyouts"The Journal of Finance, Vol. 68, No. 6 (DECEMBER 2013), pp. 2223-2267.

10. Anil Shivdasani, Yihui Wang. (2011). "Did Structured Credit Fuel the LBO Boom?"The Journal of Finance, Vol. 66, No. 4 (AUGUST 2011), pp. 1291-13288.

Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 7th International Conference on Economic Management and Green Development
ISBN (Print)
978-1-83558-085-1
ISBN (Online)
978-1-83558-086-8
Published Date
10 November 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/32/20231565
Copyright
10 November 2023
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated