This article contributes to the growing literature on the private equity (PE) phenomenon by conducting a literature review on the effects of PE ownership on management practices. Evidence is provided for the importance of this relationship to value creation. The exploration of the issues embodied in this relationship sheds light on several research gaps. These gaps are synthesized into a future-orientated framework that provides informed suggestions regarding the direction of further research endeavours.
AcharyaV.V.FranksJ. & ServaesH.2007. Private equity: Boom and bust?Journal of Applied Corporate Finance, 19(4): 44–53.
2.
AcharyaV.V.HahnM. & KehoeC.2010. Corporate governance and value creation: Evidence from private equity. CEPR Discussion Paper No. 7242.
3.
AcharyaV.V.KehoeC. & ReynerM.2009. Private equity vs. PLC boards in the UK: A comparison of practices and effectiveness. Journal of Applied Corporate Finance, 21(1): 45–56.
4.
AmessK. & WrightM.2007. The wage and employment effects of leveraged buyouts in the UK. International Journal of Economics and Business, 14: 179–95.
5.
AmessK.BrownS. & ThompsonS.2007. Management buyouts, supervision and employee discretion. Scottish Journal of Political Economy, 54: 447–74.
6.
BaconN.WrightM.DeminaN.BruiningH. & BoselieP.2008. The effects of private equity and buy-outs on HRM in the UK and the Netherlands. Human Relations, 61(10): 1399–433.
7.
BaconN.WrightM.MeulemanM. & ScholesL.2012. The impact of private equity on management practices in European buy-outs: Short-termism, Anglo-Saxon, or host country effects?Industrial Relations: A Journal of Economy and Society, 51: 605–62.
8.
BaconN.WrightM.ScholesL. & MeulemanM.2010. Assessing the impact of private equity on industrial relations in Europe. Human Relations, 63(9): 1343–70.
9.
BertoniF.FerrerM. & MartiJ.2013. The different roles played by venture capital and private equity investors on the investment activity of their portfolio firms. Small Business Economics, 40(3): 607–633.
10.
BloomN.SadunR. & Van ReenenJ.2009. Do private equity-owned firms have better management practices? In: GurungA. & LernerJ., eds. Globalization of Alternative Investments. Working Papers, Volume 2: Global Economic Impact of Private Equity 2009.New York: World Economic Forum, pp. 1–23.
11.
BruiningJ. & WrightM.2002. Entrepreneurial orientation in management buy-outs and the contribution of venture capital. Venture Capital: An International Journal of entrepreneurial finance, 4(2): 147–68.
12.
BruiningH.BonnetM. & WrightM.2004. Management control systems and strategy change in buyouts. Management Accounting Research, 15(2): 155–77.
13.
BruiningH.VerwaalE. & WrightM.2013. Private equity and entrepreneurial management in management buyouts. Small Business Economics, 40(3): 591–605.
14.
CotterJ.F. & PeckS.W.2001. The structure of debt and active equity investors: The case of the buyout specialist. Journal of Financial Economics, 59: 101–47.
15.
CummingD. & WalzU.2010. Private equity returns and disclosure around the world. Journal of International Business Studies, 41: 727–54.
16.
CunyC.J. & TalmorE.2007. A theory of private equity turnarounds. Journal of Corporate Finance, 13: 629–46.
17.
Da RinM.HellmannT. & ManjuP.2011. A survey of venture capital research. NBER Working Paper 17523.
18.
DenisD.J.1994. Organizational form and the consequences of highly leveraged transactions: Kroger's recapitalization and Safeway's LBO. Journal of Financial Economics, 36: 193–224.
GospelH.PendletonA.VitolsS. & WilkeP.2011. New investment funds, restructuring, and labor outcomes: A European perspective. Corporate Governance: An International Review, 19(3): 276–89.
22.
JensenM.1986. Agency costs of free cash flow, corporate finance, and takeovers. American Economic Review, 76: 323–39.
23.
KaplanS.N. & StrombergP.2004. Characteristics, contracts, and actions: Evidence from venture capitalist analyses. Journal of Finance, 59: 2177–210.
24.
KaplanS.N. & StrombergP.2009. Leveraged buyouts and private equity. Journal of Economic Perspectives, 23(1): 121–46.
25.
KästliR.2011. Private Equity in Southeast Asia: A Comparative Analysis of Private Equity Returns in the Context of the Investment Process and Investment Strategy.Bern: Stämpfli Publikationen AG.
26.
KuklaD.2011. Competitive Strategy of Private Equity: Boundary of the Investment Firm.Berlin: Fakultät VII — Wirtschaft und Management der Technischen Universität Berlin.
27.
LoosN.2005. Value Creation in Leveraged Buyouts: Analysis of Factors Driving Private Equity Investment Performance.Liechtenstein: Gutenberg AG.
28.
MetrickA. & YasudaA.2011. Venture capital and other private equity: A survey. European Financial Management, 17: 619–54.
29.
MeulemanM.AmessK.WrightM. & ScholesL.2009. Agency, strategic entrepreneurship and the performance of private equity backed buyouts. Entrepreneurship Theory and Practice, 33: 213–40.
30.
NielsenR.2008. The private equity-leveraged buyout form of finance capitalism: Ethical and social issues, and potential reforms. Business Ethics Quarterly, 18(3): 379–404.
31.
SiegelD.S.WrightM. & FilatotchevI.2011. Private equity, LBOs, and corporate governance: International evidence. Corporate Governance: An International Review, 19(3): 185–94.
32.
TahirM. & NisarT.2009. Evolution of management control systems in leveraged buyouts. Presented at the Fourth International Conference on Economics and Management of Networks, 3–5 September, Sarajevo, Bosnia.
33.
WattA.2008. The impact of private equity on European companies and workers: Key issues and a review of the evidence. Industrial Relations Journal, 39(6): 548–68.
34.
WeirC.LaingD. & WrightM.2005. Incentive effects, monitoring mechanisms and the threat from the market for corporate control: An analysis of the factors affecting public to private transactions in the UK. Journal of Business Finance and Accounting, 32: 909–43.
35.
WoodG. & WrightM.2009. Private equity: A review and synthesis. International Journal of Management Reviews, 11(4): 361–80.
36.
WoodG. & WrightM.2010. Private equity and human resource management: An emerging agenda. Human Relations, 63(9): 1279–96.
37.
WrightM.AmessK.WeirC. & GirmaS.2009. Private equity and corporate governance: Retrospect and prospect. Corporate Governance: An International Review, 17(3): 353–75.
38.
WrightM.HoskissonR.BusenitzL. & DialJ.2001. Finance and management buyouts: Agency versus entrepreneurship perspectives. Venture Capital: An International Journal of Entrepreneurial Finance, 3: 239–62.
