Working Paper No. 1082

The Institutional Determinants of Private Equity Involvement in Business Groups: The Case of Africa

Published: September 8, 2015Pages: 46Keywords: Business Group; Business Angel; Venture Capital; Africa; IPO; Ownership Structure; Institutional Voids; Property Rights ProtectionJEL-codes: G10; G30; G32; G34; G38; K00

The Institutional Determinants of Private Equity Involvement in Business Groups: The Case of Africa Bruce Hearn, Lars Oxelheim and Trond Randøy


This study examines the governance attributes of post-IPO (initial public offering) retained ownership of private equity in business group constituent firms in contrast to their unaffiliated counterparts, in 202 newly listed firms in 22 emerging African economies. 

We adopt an actor centred institutional-theoretic perspective in rationalizing institutional voids and the advantages of maintained governance by both business angels (BA) and venture capital (VC) private equity. 

Our findings reveal private equity retain higher post-IPO ownership in business group constituents compared to unaffiliated firms and that this is inversely moderated in the context of improving institutional quality. Our result adds to the literature on multifocal corporate governance mechanisms.

Lars Oxelheim

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An Agenda for Europe

Institutional Reform for Innovation and Entrepreneurship

Omslag 2017 Institutional Reform for Innovation and Entrepreneurship.jpg

The authors of this book, Niklas Elert, Magnus Henrekson and Mikael Stenkula, advise the economies of the European Union to become more entrepreneurial in promoting innovation and economic growth. The authors propose a reform strategy with respect to several aspects to achieve this goal.

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