Abstract
To obtain more funds from the institutional investors, private equity (PE) fund managers may report inflated valuations of private investee companies that are not yet sold. However, such overvaluations may result in a reputational cost when those investments are realized. Using evidence from 39 countries, we show that there are significant systematic biases in managers' reporting of fund performance. We find that these biases depend on the accounting and legal environment in a country, and on proxies for the degree of information asymmetry between institutional investors and PE fund managers.
| Original language | English |
|---|---|
| Pages (from-to) | 727-754 |
| Number of pages | 28 |
| Journal | Journal of International Business Studies |
| Volume | 41 |
| Issue number | 4 |
| DOIs | |
| Publication status | Published - May 2010 |
Keywords
- International financial reporting
- Private equity and portfolio diversification
- Venture capital
ASJC Scopus subject areas
- Business and International Management
- General Business,Management and Accounting
- Economics and Econometrics
- Strategy and Management
- Management of Technology and Innovation
Fingerprint
Dive into the research topics of 'Private equity returns and disclosure around the world'. Together they form a unique fingerprint.Prizes
-
Best Paper Research Prize for Private Equity Returns and Disclosure around the World
Cumming, Douglas (Recipient), 2009
Prize: Prize (including medals and awards)
-
PWC Global Competency Centre Research Excellence Award for Private Equity Returns and Disclosure around the World
Cumming, Douglas (Recipient), 2005
Prize: Prize (including medals and awards)