Public and Private Equity Markets

Author(s):  
Jeffrey Pribor ◽  
Cecilie Skajem Lind
2021 ◽  
pp. 1-11
Author(s):  
Jacob Swanson ◽  
Mary Fainsod Katzenstein

In recent decades, public prisons and jails have increasingly outsourced operational functions by “turning over the keys” to private business and, more recently and specifically, to private equity. By the early 2000s, private equity-owned corporations had entered the core sectors of prison and jail operations, creating “markets behind bars” in telecommunications, commissary sales, health provision, and a range of other services. Two decades later, they have become a quasi-oligopolistic market force across the carceral economy. Reacting to these developments, scholars and activists have explored how private firms generate profits by extracting resources from families of the incarcerated. Less explored is the fact that it is often and particularly private equity firms that partner with public carceral institutions in these extractive practices. In this reflection, we propose a three-part schematic for understanding how such partnerships, with their attendant predation on the poor and people of color, have become normalized. We focus, first, on the mechanism of bureaucracy through which mutual profit-making by public and private entities becomes regularized; second, we explore the legal mechanisms—the apparently small but potent and politically unexamined legal maneuvers—that enable the redirection of family resources beyond the support of a loved one to the operational needs of jails and prisons; finally, we trace the role of gender as a social mechanism through which private equity and its prison/jail partners rely simultaneously on women’s traditional role as caretaker and non-traditional role as primary breadwinner. We show that all three mechanisms are crucial to the economic functioning of the carceral state.


Author(s):  
Katarína Čulková ◽  
Adriana Csikósová ◽  
Mária Janošková

The global financial crisis has greatly limited access to both public and private sources of finance in the recent decades. Markets and national governments emitted low interested and multi-structured financial means with low liquidity. In the post-crisis period national governments tend to regulate their financial sectors more strictly, paying more attention to risky and low interest financial sources, necessary for investments, on which private equity is dependent. Private equity funds grew significantly in the last two decades, both in the USA and in Europe. Such new ways of debt financing and cheap money support massive growth in the industrial sectors of individual countries. This research is studying the positive impact of private equity on management of the whole industries and economies in Europe. Our analysis stems from the general assumption that private equity has positive influence on industrial performance and our empirical data evidences that private equity reacts to economic decrease more intensively than under the business model without financial leverage. The goal of this chapter is to show how private equity contributes to the growth of industrial sectors, performance of industrial companies, with a special emphasis on the mining sector.


2017 ◽  
Vol 53 (1) ◽  
pp. 1-32 ◽  
Author(s):  
Huasheng Gao ◽  
Po-Hsuan Hsu ◽  
Kai Li

We compare innovation strategies of public and private firms based on a large sample over the period 1997–2008. We find that public firms’ patents rely more on existing knowledge, are more exploitative, and are less likely in new technology classes, while private firms’ patents are broader in scope and more exploratory. We investigate whether these strategies are due to differences in firm information environments, CEO risk preferences, firm life cycles, corporate acquisition policies, or investment horizons between these two groups of firms. Our evidence suggests that the shorter investment horizon associated with public equity markets is a key explanatory factor.


2020 ◽  
Vol 36 (2) ◽  
pp. 291-313 ◽  
Author(s):  
Peter Morris ◽  
Ludovic Phalippou

Abstract Almost exactly 30 years ago, a famous article by Michael Jensen in the Harvard Business Review predicted that private equity would ‘eclipse’ the public corporation because it was a superior form of corporate ownership. Trends since 1989 seem to bear out Jensen’s prediction. Much time and energy has gone into studying whether the private equity model does see companies being run better for investors and society. Progress has been made and most studies find positive results. But samples are usually relatively small. And the relative complexity of private equity transactions, combined with a high level of privacy, makes it hard to find financial statements that are tractable enough for meaningful analysis. After 30 years of research, we argue that a conclusive answer to the question remains further away than might seem to be the case. In the meantime, the appropriate regulatory response involves narrowing the ‘regulatory gap’ between public and private markets.


2020 ◽  
Vol 65 ◽  
pp. 101781
Author(s):  
Aurélie Sannajust ◽  
Alexander Peter Groh

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