RT Journal Article
SR Electronic
T1 Key Drivers of Private Equity Firm<br/>Certification at Initial Public Offering
JF The Journal of Private Equity
FD Institutional Investor Journals
SP 69
OP 89
DO 10.3905/jpe.2013.16.2.069
VO 16
IS 2
A1 Mike
 
Hopkins
A1 Donald G
. 
Ross
YR 2013
UL https://pm-research.com/content/16/2/69.abstract
AB Private equity firms have been shown to add considerable value to investee companies. This article examines buy-side financial analyst perceptions of the determinants of private equity firm value added. The findings reveal significant relationships between the attractiveness of private equity firms’ IPOs and 1) their reputations, 2) their level of retained ownership, 3) the duration of their involvement prior to the IPO, and 4) the interaction between duration and intensity of involvement. The research reveals certification effects are best explained by theories of resource exchange and reduced informational asymmetries with reduced agency risk being a much lesser influence.TOPICS: Private equity, performance measurement, equity portfolio management, statistical methods