Private equity investment decisions in family firms: The role of human resources and agency costs

2011 ◽  
Vol 26 (2) ◽  
pp. 189-199 ◽  
Author(s):  
Alexandra Dawson
Keyword(s):  
Human Resources ◽  
Agency Costs ◽  
Private Equity ◽  
Family Firms ◽  
Investment Decisions ◽  
Equity Investment

Industry-Wise Investment Pattern of Select Private Equity Funds in India

2018 ◽  
Keyword(s):  
Financial Services ◽  
Private Equity ◽  
Equity Fund ◽  
Equity Investment ◽  
Private Equity Fund ◽  
Investment Pattern ◽  
Equity Funds ◽  
Private Equity Funds ◽  
Indispensable Tool

The article is an analysis of Private Equity investment deal values across 24 industries by select Private Equity funds from 2007–2016. The purpose of the research is to identify any patterns of movement of deal values. The study established the growth rate of deal values and observed the performance of each Private Equity fund throughout the 10-year period. The purpose of the study is to determine the significance of Private Equity investment for the promotion, growth, and development of industries. In the case of heavy industries such as Energy, Engineering and Construction and Manufacturing, Private Equity investment becomes inevitable, at least as a supplement to government funding. Due to rising disposable income and purchasing power of people, industries such as BFSI (Banking, Financial Services, and Insurance) Retail, and other services such as Travel, Transport, and Telecom are also attracting considerable Private Equity. The role of Private Equity as an indispensable tool for industrialization is emerging and becoming dynamic. Furthermore, the government’s go-ahead attitude towards reforms is further boosting Private Equity investment’s opportunities and impact on India’s economic development.

The Role of Awareness in Designing Human Resources Management Practices in Family Firms

2022 ◽  
pp. 1017-1053
Author(s):  
Giulia Flamini ◽  
Luca Gnan
Keyword(s):  
Human Resources ◽  
Family Firms ◽  
Management Practices ◽  
Human Resources Management ◽  
External Environment ◽  
Organizational Factors ◽  
Two Dimensions ◽  
Hrm Practices ◽  
Implicit Coordination

The chapter aims to develop a theoretical configurational model of HRM practices for family firms based on the construct of awareness. The typology of ideal HRM practices configurations the authors developed grounds on are 1) two organizational factors (awareness of the internal and external environment and organizational awareness) and 2) two dimensions of organizational awareness (the need for explicit and implicit coordination mechanisms). The first dimension refers to the need for mechanisms explicitly adopted by a family firm to manage task or communication interdependencies. The second one relates to those requirements for mechanisms that are available to family firms from shared cognition, which enable them to explain and anticipate task statuses and individuals' collaborative behaviors, thus helping them in managing task interdependencies. The authors combined these results in four configurations of HRM practices (administrative, shared, professional, and integrated configurations) and developed seven propositions.

scholarly journals Determinants of performance of closely – held (family) firms after going public: the role of the ownership structure, economy, changes in top management, partial sale, equity concentration after the IPO and shareholders in management

2008 ◽  
Vol 5 (2) ◽  
pp. 55-67 ◽  
Author(s):  
José Manuel Bernardo Vaz Ferreira
Keyword(s):  
Financial Performance ◽  
Ownership Structure ◽  
Agency Costs ◽  
Capital Investment ◽  
Family Firms ◽  
Activity Levels ◽  
Third Place ◽  
Going Public ◽  
Good Shape

When a closely-held (family) company goes public, there are very specific and particular determinants that have crucial influences on the post-going public operational, social and financial performance of those firms. We investigate why firms decline significantly their profitability, efficiency, employment and activity levels, and show an increase on sales and capital investment when there is a transition from private to public ownership. We conclude that this decrease in performance is significantly higher, when one or more than one of the following facts happen after firms going public: first, when there are not shareholders in management, what implies increased agency costs; secondly, when the level of equity concentration after going public is low; in third place, when the level of equity retention by the founding shareholder is low; fourth, when the economy health during the timing of the sale is not in good shape; and lastly, when the old CEO is changed.

Managers’ Escalation Behavior in Equity Investment Decisions and the Role of Corporate Governance

2016 ◽  
Vol 52 (4) ◽  
pp. 825-842
Author(s):  
Chih-Jen Huang ◽  
Amy Yueh-Fang Ho ◽  
Hsin-Yu Liang ◽  
Chun-Hung Chiang
Keyword(s):  
Corporate Governance ◽  
Investment Decisions ◽  
Equity Investment

scholarly journals Private equity investors and family firms: The role of exit intentions and conflicts

2018 ◽  
Vol 15 ◽  
pp. 44-58 ◽  
Author(s):  
Felix Thiele ◽  
Sven Busse ◽  
Stefan Prigge
Keyword(s):  
Financial Markets ◽  
Private Equity ◽  
Family Firms ◽  
Conflicts Of Interest ◽  
Research Approach ◽  
Structured Interviews ◽  
The Family ◽  
Decision Alternative ◽  
Case Based

This study examines private equity minority investors’ exit from family firms and its consequences for owner families. The authors theoretically discuss potential conflicts that might influence the exit decision, alternative exit routes, and the intentions of the family owners to exit the business along with the private equity investors. Subsequently, the theoretical insights were tested empirically using a case-based research approach. Four private equity firms provided data on 14 cases of completed minority private equity investments from Germany. Semi-structured interviews with investment managers offered further information regarding the analysed cases. Empirical findings reveal that conflicts of interest over the exit of private equity minority investors only rarely arise. Moreover, differences between planned and applied exit routes are mainly caused by changes in the economic situation of the company and/or in the conditions of financial markets and are related to changes in family owners’ exit intentions.

The Role of Awareness in Designing Human Resources Management Practices in Family Firms

2022 ◽  
pp. 303-339
Author(s):  
Giulia Flamini ◽  
Luca Gnan
Keyword(s):  
Human Resources ◽  
Family Firms ◽  
Management Practices ◽  
Human Resources Management ◽  
External Environment ◽  
Organizational Factors ◽  
Two Dimensions ◽  
Hrm Practices ◽  
Implicit Coordination

The chapter aims to develop a theoretical configurational model of HRM practices for family firms based on the construct of awareness. The typology of ideal HRM practices configurations the authors developed grounds on are 1) two organizational factors (awareness of the internal and external environment and organizational awareness) and 2) two dimensions of organizational awareness (the need for explicit and implicit coordination mechanisms). The first dimension refers to the need for mechanisms explicitly adopted by a family firm to manage task or communication interdependencies. The second one relates to those requirements for mechanisms that are available to family firms from shared cognition, which enable them to explain and anticipate task statuses and individuals' collaborative behaviors, thus helping them in managing task interdependencies. The authors combined these results in four configurations of HRM practices (administrative, shared, professional, and integrated configurations) and developed seven propositions.

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