Title
Private equity investments and disclosure policy Private equity investments and disclosure policy
Author
Faculty/Department
Faculty of Applied Economics
Publication type
report
Publication
Antwerp :UA, [*]
Source (series)
Research paper / UA, Faculteit TEW ; 2004:25
Volume/pages
46 p.,
Carrier
E
Target language
English (eng)
Affiliation
University of Antwerp
Abstract
We investigate whether a firms disclosure policy is affected by the changing corporate setting and intensified corporate governance associated with private equity (PE) investments. For a unique sample of unquoted PE backed firms we observe a significant switch to increased financial disclosure in the pre-investment year, consistent with the hypothesis that entrepreneurs attempt to reduce information asymmetries inherent to the PE application by increasing their disclosure levels. Further, we document that the governance and professionalization impact of PE investors affects their portfolio firms financial disclosure positively. Finally, differentiating on investor type (government versus non-government related) reveals no overall effect on disclosure, both in the pre- as in the post-investment years. Results are robust to various sensitivity checks.
Full text (open access)
https://repository.uantwerpen.be/docman/irua/971f91/75c023e5.pdf
Handle