Global leveraged buyout deal performance: A cross-border cross-cultural perspective

Xiao Jia and Maurice McCourt

Pacific-Basin Finance Journal, 2022, vol. 71, issue C

Abstract: Using a novel and comprehensive dataset, we find that the deal values of cross-border private equity-backed leveraged buyouts are significantly larger than domestic ones, but after controlling for the effects of diseconomies of scale, the performance of cross-border deals is not significantly different from domestic deals. We identify three channels to enhance cross-border leveraged buyout performance: more deal experience of the private equity sponsor, reduced communication costs, and spillover effects of institutional quality from the sponsor country to the target.

Keywords: Cross-border leveraged buyout; Diseconomies of scale; Communication cost; Spillover effect (search for similar items in EconPapers)
JEL-codes: G23 G34 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:71:y:2022:i:c:s0927538x21001840

DOI: 10.1016/j.pacfin.2021.101677

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