Same owner, different impact: How responses to performance feedback differ across a private equity investor's portfolio firms
Veroniek Collewaert,
Jeroen Neckebrouck,
Tom Vanacker
et al.
Abstract:Research SummaryPrivate equity (PE) investors invest in a portfolio of firms, setting new, ambitious performance aspirations and providing monitoring and value‐adding services to help management attain these aspirations. Integrating a behavioral theory of the firm and corporate governance perspective, this study investigates how portfolio firms respond to performance feedback, considering heterogeneity in PE investors' incentives and influence toward a given portfolio firm's strategic actions. Using unique dat… Show more
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