Does private equity create wealth? The effects of private equity and derivatives on corporate governance

"Private equity has reaped large rewards in recent years. We claim that one major reason for this success is due to the corporate governance advantages of private equity over the public corporation. We argue that the development of substantial derivative contracts and trading has significantly...

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Bibliographic Details
Main Authors: Masulis, Ronald W., Thomas, Randall
Institution:ETUI-European Trade Union Institute
Format: TEXT
Language:English
Published: Brussels 2009
ECGI
Subjects:
Online Access:https://www.labourline.org/KENTIKA-19188613124919068959-Does-private-equity-create-wea.htm
Description
Summary:"Private equity has reaped large rewards in recent years. We claim that one major reason for this success is due to the corporate governance advantages of private equity over the public corporation. We argue that the development of substantial derivative contracts and trading has significantly weakened the governance of public corporations and has created a need for financially sophisticated directors and much closer supervision of management. The private equity model delivers these benefits and allows corporations to be better governed, creating wealth gains for investors."
Physical Description:41 p.
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