Effects of Foreign Investment on Domestic Private Equity

Hernán Herrera-Echeverri, John Rosso, D. Fragua
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Abstract

Abstract Using a sample of 23 OECD countries, studied over a period of 20 years (1995–2015), we find that direct foreign investment has a spillover effect on private equity (PE) in that it supports the development of the domestic PE industry. We also show how contextual variables influence the investment process. Our results suggest that a positive effect on domestic PE dynamics can be seen if the number of foreign PE deals is measured, while calculations using the value of foreign PE investments show mixed results. The positive effect of foreign investment on domestic PE activity persists where low gross capital formation is adopted and in low value-added environments. Foreign PE investment increases overseas activity in the host country’s domestic PE industry. These effects are proportional to the size of the foreign fund. Foreign PE activity related to firms in the early stages of development encourage domestic PE industry activity in the same kind of firms.
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外商投资对国内私募股权的影响
本文以23个经合组织国家为样本,对1995-2015年的20年时间进行了研究,发现外商直接投资对私募股权(PE)具有溢出效应,支持了国内私募股权产业的发展。我们还展示了上下文变量如何影响投资过程。我们的研究结果表明,如果衡量外国私募股权交易的数量,可以看到对国内私募股权动态的积极影响,而使用外国私募股权投资价值的计算结果则喜忧参半。在采用低资本形成总额和低附加值环境下,外国投资对国内私募股权活动的积极影响持续存在。外国私募股权投资增加了东道国国内私募股权行业的海外活动。这些影响与外国资金的规模成正比。国外与发展初期企业相关的私募股权活动鼓励了国内同类企业的私募股权行业活动。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
2.60
自引率
8.30%
发文量
9
期刊介绍: International Journal of the Economics of Business presents original, peer reviewed research in economics that is clearly applicable to business or related public policy problems or issues. The term "business" is used in its widest sense to encompass both public and private sector—governmental, private non-profit and cooperative organizations, as well as profit-seeking enterprises. International Journal of the Economics of Business carries papers relating to three main spheres: The organization—to analyse and aid decision making and the internal organization of the business; The industry—to analyse how businesses interact and evolve within and across industries.
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