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Does culture affect the performance of private equity buyouts?

Research output: Contribution to Journal/Magazine › Journal article › peer-review

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Does culture affect the performance of private equity buyouts? / Hammer, B.; Hinrichs, H.; Schwetzler, B.
In: Journal of Business Economics, Vol. 88, 01.05.2018, p. 393-469.

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Harvard

Hammer, B, Hinrichs, H & Schwetzler, B 2018, 'Does culture affect the performance of private equity buyouts?', Journal of Business Economics, vol. 88, pp. 393-469. https://doi.org/10.1007/s11573-017-0886-0

APA

Hammer, B., Hinrichs, H., & Schwetzler, B. (2018). Does culture affect the performance of private equity buyouts? Journal of Business Economics, 88, 393-469. https://doi.org/10.1007/s11573-017-0886-0

Vancouver

Hammer B, Hinrichs H, Schwetzler B. Does culture affect the performance of private equity buyouts? Journal of Business Economics. 2018 May 1;88:393-469. Epub 2017 Nov 28. doi: 10.1007/s11573-017-0886-0

Author

Hammer, B. ; Hinrichs, H. ; Schwetzler, B. / Does culture affect the performance of private equity buyouts?. In: Journal of Business Economics. 2018 ; Vol. 88. pp. 393-469.

Bibtex

@article{66463ea6c1b94bcabc1103d373f23976,
title = "Does culture affect the performance of private equity buyouts?",
abstract = "This paper uses GLOBE{\textquoteright}s performance orientation (PO) dimension to investigate the relationship between national culture and private equity (PE) performance. We argue that high PO has negative performance implications as it provides the lowest potential for portfolio firms to benefit from a spillover of the distinct PE performance focus, and vice versa. To test this hypothesis, we analyze operating performance metrics of 946 deals from 26 European countries and exit channels of 5093 global deals from 67 countries. Consistent with the “spillover hypothesis”, we find that higher levels of PO are detrimental to efficiency improvements and increase the probability for unsuccessful exits. These findings hold after addressing endogeneity concerns, confounding and measurement error.",
keywords = "Private equity, leveraged buyouts, exit channel, operating performance, culture",
author = "B. Hammer and H. Hinrichs and B. Schwetzler",
year = "2018",
month = may,
day = "1",
doi = "10.1007/s11573-017-0886-0",
language = "English",
volume = "88",
pages = "393--469",
journal = "Journal of Business Economics",
issn = "1861-8928",
publisher = "Betriebswirtschaftlicher Verlag Dr. Th. Gabler GmbH",

}

RIS

TY - JOUR

T1 - Does culture affect the performance of private equity buyouts?

AU - Hammer, B.

AU - Hinrichs, H.

AU - Schwetzler, B.

PY - 2018/5/1

Y1 - 2018/5/1

N2 - This paper uses GLOBE’s performance orientation (PO) dimension to investigate the relationship between national culture and private equity (PE) performance. We argue that high PO has negative performance implications as it provides the lowest potential for portfolio firms to benefit from a spillover of the distinct PE performance focus, and vice versa. To test this hypothesis, we analyze operating performance metrics of 946 deals from 26 European countries and exit channels of 5093 global deals from 67 countries. Consistent with the “spillover hypothesis”, we find that higher levels of PO are detrimental to efficiency improvements and increase the probability for unsuccessful exits. These findings hold after addressing endogeneity concerns, confounding and measurement error.

AB - This paper uses GLOBE’s performance orientation (PO) dimension to investigate the relationship between national culture and private equity (PE) performance. We argue that high PO has negative performance implications as it provides the lowest potential for portfolio firms to benefit from a spillover of the distinct PE performance focus, and vice versa. To test this hypothesis, we analyze operating performance metrics of 946 deals from 26 European countries and exit channels of 5093 global deals from 67 countries. Consistent with the “spillover hypothesis”, we find that higher levels of PO are detrimental to efficiency improvements and increase the probability for unsuccessful exits. These findings hold after addressing endogeneity concerns, confounding and measurement error.

KW - Private equity

KW - leveraged buyouts

KW - exit channel

KW - operating performance

KW - culture

U2 - 10.1007/s11573-017-0886-0

DO - 10.1007/s11573-017-0886-0

M3 - Journal article

VL - 88

SP - 393

EP - 469

JO - Journal of Business Economics

JF - Journal of Business Economics

SN - 1861-8928

ER -