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This paper investigates whether and how corporate governance can contribute to the likelihood of a "successful" IPO, by taking into account a representative sample of listings which have taken place in Europe from 2000 to 2015. Through a painstaking collection of data obtained from different sources, we compute the financial and stock performance achieved by a sample of 1,270 European companies, for which we investigate the association with several facets of firms' corporate governance (i.e., board

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In this study we analyze the risks and perils arising from LBO transactions, in order to consider the impact of private equity in this category of transactions. From this perspective, focusing attention on 2,450 deals occurred during the period 2002-2011, our study adds to previous literature that has investigated the post-LBO operating performance and the factors that can determine the success of those deals. In particular, by running a multivariate regression analysis in order to test for different research hypothesis proposed by literature dealing with the determinants of LBO deals, we confirm the validity of the assets stripping hypothesis, even if we find evidence that the presence of private equity, among other factors, can help to mitigate that peril. We find evidence that, especially in the short term, enterprises suffer from a slight deterioration in operating performance compared to their situation before the buyout. Moreover, under specific circumstances, enterprises experience a slight improvement in the ability to generate cash. Finally, we find positive evidence about the presence of private equity investors, which are mainly able to promote the growth of firms, as well as to increase the capability to generate cash, rather than generate positive effects on the level of employment. At the same time, we find also evidence that the presence of private equity investors is a significant determinant of distress for firms involved in LBO transactions. Risks and Perils in LBO transactions AbstractIn this study we analyze the risks and perils arising from LBO transactions, in order to consider the impact of private equity in this category of transactions. From this perspective, focusing attention on 2,450 deals occurred during the period 2002-2011, our study adds to previous literature that has investigated the post-LBO operating performance and the factors that can determine the success of those deals. In particular, by running a multivariate regression analysis in order to test for different research hypothesis proposed by literature dealing with the determinants of LBO deals, we confirm the validity of the assets stripping hypothesis, even if we find evidence that the presence of private equity, among other factors, can help to mitigate that peril. We find evidence that, especially in the short term, enterprises suffer from a slight deterioration in operating performance compared to their situation before the buyout. Moreover, under specific circumstances, enterprises experience a slight improvement in the ability to generate cash. Finally, we find positive evidence about the presence of private equity investors, which are mainly able to promote the growth of firms, as well as to increase the capability to generate cash, rather than generate positive effects on the level of employment. At the same time, we find also evidence that the presence of private equity investors is a significant determinant of distress for firms involved in LBO transactions. JEL Codes: G32, G34

Summary: European supervisors aggressively requested more capital at large banks. That may cut credit to the economy. We confirm that especially larger banks cut loans while less-significant banks partly offset that credit drop. Moreover, we identify nasty spillovers from that interaction. Specifically, larger banks’ deleveraging was associated with significant portfolio worsening for mid-sized banks. We conjecture that while small banks’ loan expansion was somewhat shielded by superior soft-information-based technologies, medium-sized banks were fully exposed to lending to bad borrowers as they boosted loans by relying on credit scoring and Internal Rating Based models. That is proving tricky through the prolonged European dip.