Interest alignment and firm performance

This study derives testable hypotheses from their framework and thus provides an empirical test of interest alignment theory based on a sample of 69 management buyouts in the UK. The results of the multivariate regression model suggest that in this setting, interest alignment does have a significant influence on firm performance.competitive advantage; interest alignment; motivation; buyouts

The risk-adjusted performance of US buyouts

This paper assesses the risk-adjusted performance of US buyouts.risk-adjusted performance; US buyouts; risk; investment

Motivation and the theory of the firm

This paper proposes to revisit the debate on the theory of the firm using motivation theory as the primary analytical tool.theory of the firm; motivation theory

Understanding value generation in buyouts

In this paper, the authors develop a three-dimensional conceptual framework for value generation in buyouts that categorizes and links the different levers of buyouts value generation. This framework provides the basis to take a look beyond individual value levers and shed light on the underlying strategic logic of buyouts.private equity; buyout; value generation

The performance of private equity funds

Using a unique and comprehensive dataset, the authors show that the sample of mature private equity funds used in previous research and as an industry benchmark is biased towards better performing funds. They also show that accounting values reported by these mature funds for non exited investments are substantial and they provide evidence that they mostly represent living dead investments. After correcting for sample bias and overstated accounting values, average fund performance changes from slight over performance to substantial underperformance of -3.83% per year with respect to the S&P 500. Assuming a typical fee structure, they find that gross-of-fees these funds outperform by 2.96% per year. The authors conclude that the stunning growth in the amount allocated to this asset class cannot be attributed to genuinely high past performance. They discuss several potentially misleading aspects of standard performance reporting and discuss some of the added benefits of investing in private equity funds as a first step towards an explanation for our results.Private equity funds; performance

What does it take to be good parent ? Opening the black-box of value creation in the unrealated multibusiness firm

This paper develops and tests new theory about the determinants of value creation in unrelated multibusiness firms from a resource-based perspective. The authors argue that the availability of "headquarter resources", which are at the basis of headquarter services provided to the business units, is the driving force behind unrelated diversification.diversification; private equity; management buyout; leveraged buyout; resource-based view; parenting effect; conglomerate

The opportunity cost of capital of US buyouts

This paper addresses the problem of accurately determining buyout opportunity cost of capital for performance analyses. It draws on a unique and proprietary set of data on 133 United States buyouts between 1984 and 2004. For each buyout, we determine a public market equivalent that matches the buyout in timing and systematic risk. We show that under realistic mimicking conditions, the average opportunity cost of capital is below the commonly used benchmark S&P 500. The surprising result has a simple explanation: ex post, many of the transactions mimicking the buyouts would have defaulted in the public market. Only under relaxed assumptions, is the average opportunity cost of capital close to the average index return. Our sensitivity analyses highlight the need for a comprehensive risk adjustment that considers both operating risk and leverage risk for an accurate assessment of buyout performance. This finding is particularly important as existing literature on this topic tends to rely on benchmarks without a proper risk adjustment.Private Equity; Risk-Adjusted Performance; Buyout; Benchmarking Alternative Assets;

Measuring idiosyncratic risks in leveraged buyout transactions

The authors use a contingent claims analysis model to calculate the idiosyncratic risks in Leveraged Buyout transactions.Idiosyncratic Risk; LBO; Private Equity; Benchmarking; CCA

Measuring idiosyncratic risks in leveraged buyout transactions

We use a CCA model to calculate implied idiosyncratic risks of LBO transactions. A decisive model feature is the consideration of amortization. From the model, the asset value volatility and the equity value volatility can be derived via a numerical procedure. For a sample of 40 LBO transactions we determine the necessary model parameters and calculate the transactions' implied idiosyncratic risks. We discuss the expected model sensitivities and verify them by variation of the input parameters. With the knowledge of the returns to the equity investors of the LBOs we are able to calculate Sharpe Ratios on individual transaction levels for the first time, thereby fully incorporating the superimposed leverage risks.Idiosyncratic Risk; Private Equity; Benchmarking;

Avaliando o plano municipal de educação: monitoramento e controle social

Evaluating and monitoring the Municipal Education Plans is a referral given by the National Education Plan (2014-2024). In this context, the objective is to analyze the actions of the Municipal Education Council and the Municipal Education Secretariat, considering the monitoring and evaluation of the Municipal Education Plan (PME), which culminated in the Municipal Education Conference in the municipality of Jataí, Goiás. Through documentary research, with primary sources, the categories monitoring and social control in the dialectical movement were problematized, understanding that, in liberal democracy, they dispute two educational projects, one for the training of the worker and the other for the complete human formation. In the managerial State, the process of implementing and evaluating the PME presents itself, in appearance, in a democratic way, however, in essence it objective the accountability of those involved. On the other hand, the social control that counts on the participation of society in the process of monitoring and evaluating the PME aims at a socially referenced quality.Evaluar y monitorear los Planes Municipales de Educación es un encaminamiento dado por el Plan Nacional de Educación (2014-2024). En este contexto, se objetiva analizar las acciones del Consejo Municipal de Educación y de la Secretaría Municipal de Educación, considerando el monitoreo y la evaluación del Plan Municipal de Educación (PME), que culminaron en la Conferencia Municipal de Educación en el municipio de Jataí, Goiás. Frente a la investigación documental, con fuentes primarias, se problematizaron las categorías monitoreo y control social en el movimiento dialéctico, comprendiéndose que, en la democracia liberal, disputan dos proyectos educacionales, uno para la formación del trabajador y otro para la formación humana plena. En el Estado gerencial, el proceso de implementación y evaluación del PME se presenta, en la apariencia, de forma democrática, en pero, en su esencia objetiva y responsabilidad de los involucrados. Por otro lado, el control social que cuenta con la participación de la sociedad en el proceso de monitoreo y evaluación del PME anhela una cualidad socialmente referenciada.Avaliar e monitorar os Planos Municipais de Educação é um encaminhamento dado pelo Plano Nacional de Educação (2014-2024). Nesse contexto, objetiva-se analisar as ações do Conselho Municipal de Educação e da Secretaria Municipal de Educação, considerando o monitoramento e a avaliação do Plano Municipal de Educação (PME), que culminaram na Conferência Municipal de Educação no município de Jataí, Goiás. Mediante pesquisa documental, com fontes primárias, problematizaram-se as categorias monitoramento e controle social no movimento dialético, entendendo-se que, na democracia liberal, disputam dois projetos educacionais, um para a formação do trabalhador e outro para a formação humana plena. No Estado gerencial, o processo de implementação e avaliação do PME se apresenta, na aparência, de forma democrática, porém, na sua essência objetiva a responsabilização dos envolvidos. Por outro lado, o controle social que conta com a participação da sociedade no processo de monitoramento e avaliação do PME almeja uma qualidade socialmente referenciada