Publicação
Default determinants of PE-backed firms in Europe
| Resumo: | This study examines a sample of European private equity transactions undertaken between 2000 and 2015. The factors that have an impact on the likelihood of the target’s default are identified and evaluated through a logistic regression. Three groups of variables are included in the analysis: (1) economic variables which capture the trend of the overall economy; (2) deal features, defined as variables on which the PE has a decisional power; (3) specific characteristics of the target firm before the transaction. The findings suggest that leverage employed in the transaction, cross border deals, targets ROA previous to the transaction, and the fact of being a company from UK has an impact of the likelihood of default |
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| Autores principais: | March, Giulia |
| Assunto: | Private equity Leveraged buyouts Default likelihood Probabilidade de falência |
| Ano: | 2019 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade Católica Portuguesa |
| Idioma: | inglês |
| Origem: | Veritati - Repositório Institucional da Universidade Católica Portuguesa |
| Resumo: | This study examines a sample of European private equity transactions undertaken between 2000 and 2015. The factors that have an impact on the likelihood of the target’s default are identified and evaluated through a logistic regression. Three groups of variables are included in the analysis: (1) economic variables which capture the trend of the overall economy; (2) deal features, defined as variables on which the PE has a decisional power; (3) specific characteristics of the target firm before the transaction. The findings suggest that leverage employed in the transaction, cross border deals, targets ROA previous to the transaction, and the fact of being a company from UK has an impact of the likelihood of default |
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