Annington versus Deutsche Annington: Private Equity and Housing in the Anglo-Saxon and Rhenish Contexts

AbstractStereotypes matter for economic interaction if counterparty utility is informed by factors other than price. Stereotyped agents may engage in efforts to counter stereotype by adapting to in-group standards. We present a model informing the optimal extent of these efforts depending on an agent’s (a) share of total transactions between out- and in-group agents; and (b) share of repeated transaction pairings with in-group counterparties. Low values of (a) suppress the effect of adaptation efforts on the stereotype itself (persistence). In turn, low values of (b) mean that out-group agents cannot dissociate from stereotype (stickiness). Significantly, the model implies that the optimum level of effort may require adaptation beyond in-group standards, and that such over-adaptation attains maximum likelihood in cases where stereotype is sticky and persistent at the same time. We test our model with data on private equity buyout investments conducted in Japan between 1998 and 2015 by domestic Japanese and Anglo-Saxon funds. We document that the latter not only adapt, but eventually over-adapt. In addition, we show that their efforts are effective in reducing a premium initially asked by domestic counterparties.

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RISK MANAGEMENT IN PRIVATE EQUITY FUNDS: A COMPARATIVE STUDY OF INDIAN AND FRANCO-GERMAN FUNDS

Journal of Developmental Entrepreneurship ◽

10.1142/s1084946706000258 ◽

2006 ◽

Vol 11 (01) ◽

pp. 35-55 ◽

Cited By ~ 5

Author(s):

CAN KUT ◽

JAN SMOLARSKI

Keyword(s):

Risk Management ◽

High Risk ◽

Private Equity ◽

Venture Capitalist ◽

Anglo Saxon ◽

Public Enterprises ◽

Equity Funds ◽

Private Equity Funds ◽

The Many ◽

Management Preferences

Venture capitalist and buy-out funds are often considered experts at investing in high-risk projects and companies. To be successful investors, private equity funds must therefore manage the many aspects of risk that are associated with investing in non-public enterprises. This study examines how Indian private equity funds manage several dimensions of risk in comparison to non-Anglo-Saxon funds. We analyze risk management preferences in Indian and Franco-German funds in pre- and post-investment stages. The results, which are discussed in detail, show significant differences between the two groups.

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Die angelsächsische Achse

Zeitschrift für Wirtschaftsgeographie ◽

10.1515/zfw.2013.0015 ◽

2013 ◽

Vol 57 (1-2) ◽

Author(s):

Christoph Scheuplein

Keyword(s):

Venture Capital ◽

Private Equity ◽

Empirical Studies ◽

Special Focus ◽

Anglo Saxon ◽

Frankfurt Am Main ◽

Equity Investment ◽

Equal Importance ◽

The Usa ◽

The Uk

The Anglo-Saxon axis. An empirical analysis of buy-outs and location structures of private equity firms in Germany. The current research suggests that equity investment firms in Germany are concentrated in five or six regional centres of equal importance. While the theoretical discussion focuses primarily on venture capital, empirical studies on locations of venture capital and buy-outs usually make no explicit distinction between the two forms of investment. The analysis presented here makes a systematic distinction between venture capital and buy-outs, with a special focus on buy-outs because this form of investment is of greater economic importance. The paper also extends the range of available data by including data on company transactions. An evaluation of all buy-outs in Germany in 2012 indicates that Munich is the only major location of buy-out firms in Germany, apart from Frankfurt am Main. The branch offices of equity investment firms based in the USA and the United Kingdom (UK) are a crucial factor. Moreover, many private equity firms operate directly from outside Germany, particularly from London. Thus, one might speak of an Anglo-Saxon axis of buy-out firms. These firms have a significant competitive advantage due to better fundraising opportunities in the financialised economies of the USA and the UK. Therefore, it is argued that, rather than focusing exclusively on the regional capital supply to explain the infrastructure of equity investment firms, as it was done in the past, the research should also take the organization of sources of funds into consideration.

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The Impact of Private Equity on Management Practices in European Buy-outs: Short-termism, Anglo-Saxon, or Host Country Effects?

Industrial Relations A Journal of Economy and Society ◽

10.1111/j.1468-232x.2012.00692.x ◽

2012 ◽

Vol 51 ◽

pp. 605-626 ◽

Cited By ~ 12

Author(s):

NICK BACON ◽

MIKE WRIGHT ◽

MIGUEL MEULEMAN ◽

LOUISE SCHOLES

Keyword(s):

Host Country ◽

Private Equity ◽

Management Practices ◽

Anglo Saxon ◽

Country Effects ◽

Short Termism ◽

The Impact

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An Empirical Analysis of Underpricing and Oversubscription between Venture-Backed IPO and Non-Venture-Backed IPO in Italy

International Business Research ◽

10.5539/ibr.v12n4p143 ◽

2019 ◽

Vol 12 (4) ◽

pp. 143 ◽

Cited By ~ 1

Author(s):

Maurizio Rija

Keyword(s):

Stock Market ◽

Venture Capital ◽

Empirical Analysis ◽

Private Equity ◽

Venture Capitalist ◽

Information Asymmetries ◽

Anglo Saxon ◽

Economic Literature ◽

Risk Capital ◽

Institutional Investment

Over the years, in order to meet the financial needs of companies, new forms of financing alternative to the traditional banking channel have been developed. These include the institutional investment in risk capital, which is defined by the terms Anglo-Saxon venture capital and private equity. In this empirical analysis, the divestment of the venture capitalist's participation will be emphasized by listing the invested companies in the stock market, a channel not widely used in Italy, but highly desired because of the various benefits it can bring. Analyzing the IPOs that were carried out in Italy on the main list from 2007 to 2017, we will verify what is described in the economic literature, which is that a venture capitalist, by performing a certification role, is able to reduce the information asymmetries presented in the listing process and, as a result, contain underpricing and improve oversubscription. By using the presence of a venture capitalist within the venture capital as the only variable, it has been observed that on average the underpricing and oversubscription of the venture-backed IPOs slightly differentiate from the non-venture-backed IPOs. However, the study carried out shows that this difference, although not significant, turns out to be very interesting.

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