Private equity returns and disclosure around the world

Douglas Cumming*, Uwe Walz

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

235 Citations (Scopus)


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 languageEnglish
Pages (from-to)727-754
Number of pages28
JournalJournal of International Business Studies
Issue number4
Publication statusPublished - May 2010


  • 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


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