The Institutional Determinants of Private Equity Involvement in Business Groups: The Case of Africa

Bruce Hearn, Lars Oxelheim and Trond Randøy
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Bruce Hearn: Sussex University
Trond Randøy: Agder University

No 1082, Working Paper Series from Research Institute of Industrial Economics

Abstract: This study examines the governance attributes of post-IPO (initial public offering) retained ownership of private equity in business group constituent firms in contrast to their unaffiliated counterparts, in 202 newly listed firms in 22 emerging African economies. We adopt an actor centred institutional-theoretic perspective in rationalizing institutional voids and the advantages of maintained governance by both business angels (BA) and venture capital (VC) private equity. Our findings reveal private equity retain higher post-IPO ownership in business group constituents compared to unaffiliated firms and that this is inversely moderated in the context of improving institutional quality. Our result adds to the literature on multifocal corporate governance mechanisms.

Keywords: G10; G30; G32; G34; G38; K00 (search for similar items in EconPapers)
JEL-codes: G10 G30 G32 G34 G38 K00 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2015-09-08
New Economics Papers: this item is included in nep-afr and nep-cfn
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Related works:
Journal Article: The institutional determinants of private equity involvement in business groups—The case of Africa (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:iuiwop:1082

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