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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Sick of Inequality?

An Introduction to the Relationship between Inequality and Health

Sick of Inequality.jpg

In this book Andreas Bergh, Therese Nilsson, IFN and Lund University, and Daniel Waldenström, IFN and Paris School of Economics, France, review the latest research on the relationship between inequality and health. What does inequality mean for our health? Does increasing income inequality affect outcomes such as obesity, life expectancy and subjective well-being?


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To present ongoing research informal brown-bag seminars are held on Mondays at 11:30 am. This is an opportunity for IFN researchers to test ideas and results.

Academically oriented seminars are most of the time held on Wednesdays at 10 am. At these events researchers from IFN and other institutions present their research.

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