Determinants of International Buyout Investments

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...

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Bibliographic Details
Main Authors: Aldatmaz, Serdar, Brown, Greg W., Demirguc-Kunt, Asli
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2020
Subjects:
PRIVATE EQUITY
BUYOUT INVESTMENT
FINANCIAL DEVELOPMENT
REGULATORY REFORM
CONTRACT ENFORCEMENT
INVESTOR PROTECTION
Online Access:http://documents.worldbank.org/curated/en/383331584969589368/Determinants-of-International-Buyout-Investments
http://hdl.handle.net/10986/33483
id okr-10986-33483
recordtype oai_dc
spelling okr-10986-334832022-09-20T00:12:38Z Determinants of International Buyout Investments Aldatmaz, Serdar Brown, Greg W. Demirguc-Kunt, Asli PRIVATE EQUITY BUYOUT INVESTMENT FINANCIAL DEVELOPMENT REGULATORY REFORM CONTRACT ENFORCEMENT INVESTOR PROTECTION 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. 2020-03-26T14:08:44Z 2020-03-26T14:08:44Z 2020-03 Working Paper http://documents.worldbank.org/curated/en/383331584969589368/Determinants-of-International-Buyout-Investments http://hdl.handle.net/10986/33483 English Policy Research Working Paper;No. 9191 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic PRIVATE EQUITY
BUYOUT INVESTMENT
FINANCIAL DEVELOPMENT
REGULATORY REFORM
CONTRACT ENFORCEMENT
INVESTOR PROTECTION
spellingShingle PRIVATE EQUITY
BUYOUT INVESTMENT
FINANCIAL DEVELOPMENT
REGULATORY REFORM
CONTRACT ENFORCEMENT
INVESTOR PROTECTION
Aldatmaz, Serdar
Brown, Greg W.
Demirguc-Kunt, Asli
Determinants of International Buyout Investments
relation Policy Research Working Paper;No. 9191
description 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.
format Working Paper
author Aldatmaz, Serdar
Brown, Greg W.
Demirguc-Kunt, Asli
author_facet Aldatmaz, Serdar
Brown, Greg W.
Demirguc-Kunt, Asli
author_sort Aldatmaz, Serdar
title Determinants of International Buyout Investments
title_short Determinants of International Buyout Investments
title_full Determinants of International Buyout Investments
title_fullStr Determinants of International Buyout Investments
title_full_unstemmed Determinants of International Buyout Investments
title_sort determinants of international buyout investments
publisher World Bank, Washington, DC
publishDate 2020
url http://documents.worldbank.org/curated/en/383331584969589368/Determinants-of-International-Buyout-Investments
http://hdl.handle.net/10986/33483
_version_ 1764478860698583040

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