Determinants of International Buyout Investments
Using a comprehensive and proprietary data set on international private equity activity, this paper studies the determinants of buyout investments across 61 countries and 19 industries over 1990-2017. The study finds evidence that macroeconomic con...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/383331584969589368/Determinants-of-International-Buyout-Investments http://hdl.handle.net/10986/33483 |
| Summary: | Using a comprehensive and proprietary
data set on international private equity activity, this
paper studies the determinants of buyout investments across
61 countries and 19 industries over 1990-2017. The study
finds evidence that macroeconomic conditions, development of
stock and credit markets, and the regulatory environment in
a country are important drivers of international buyout
capital flows. The paper shows that countries with low
unemployment, more active stock and credit markets, and
better rule of law receive more buyout capital. A
difference-in-differences approach is used to explore the
regulatory reforms some countries have adopted over the
sample period. The findings are that countries receive
significantly more buyout capital following investor
protection and contract enforcement reforms. The impact of
regulatory reform is more pronounced in countries with
better corporate governance standards and education. Buyout
investment responds to these factors more so than foreign
direct investment and gross domestic fixed investment. |
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