What Drives Private Equity Investments in Romania?

Abstract This paper aims at presenting the determinants of private equity investments in Romania over the period 2000 - 2013. Additionally, this paper presents the main highlights in terms of evolution, source of funding and activities in which the private equity funds invested during the crisis. Starting from the existing literature, this paper extends the analysis of private equity drivers to Romanian market by including variables such as: economic growth, market capitalization, interest rate, unemployment rate and public R&D expenditure which were already tested in previous papers. In addition, this paper introduces new variables such us productivity and corruption index which we consider important factors in explaining the evolution of private equity investments in Romania. The results of our empirical model confirmed existing hypothesis regarding the importance of some determinants such as: unemployment rate, economic growth, market capitalization and corruption. Based on our empirical results, we have pointed several strategic directions that are meant to support the development of the private equity market in Romania. Keywords: private equity; economic growth; market capitalization; unemployment rate; corruption; private equity determinants; Romania.

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Creating value in investments with the use of private equity funds

Journal of Management and Financial Sciences ◽

10.33119/jmfs.2020.40.1 ◽

2020 ◽

pp. 9-20

Author(s):

Olga Mikołajczyk ◽

Bartosz Owedyk

Keyword(s):

Literature Review ◽

Foreign Language ◽

Value Creation ◽

Private Equity ◽

Investment Value ◽

Equity Funds ◽

Private Equity Funds ◽

Equity Investments ◽

Language Literature ◽

Private Equity Investments

The influence of the private equity sector on the contemporary economy is quite significant. This is why the present paper attempts to examine mechanisms private equity investors apply in order to increase the value of their investments. The literature review has identified the most fundamen- tal elements of creating value on the basis of empirical, academic studies that verified hypotheses regarding the influence of particular mechanisms on the process of value creation in private equity investments. This paper is divided into five parts that describe the elements of the investment pro- cess, research into value creation, financial arbitration, as well as direct and indirect mechanisms of creating investment value. The paper is mainly based on the review of foreign-language literature.

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Determinants of Private Equity Investments across the BRICS Countries

The Journal of Private Equity ◽

10.3905/jpe.2018.21.4.018 ◽

2018 ◽

Cited By ~ 1

Keyword(s):

Private Equity ◽

Capital Investments ◽

Explanatory Variables ◽

Developed Economies ◽

Brics Countries ◽

Equity Funds ◽

Private Equity Funds ◽

Equity Investments ◽

Venture Capital Investments ◽

Private Equity Investments

The determinants of private equity investments (particularly venture capital investments) have been studied extensively across developed economies, but this is not the case across emerging markets. This study primarily focuses on the determinants of private equity (inclusive of all sub-classes) among the BRICS countries. Six macroeconomic and market-related explanatory variables, including the Corruption Perception Index, are examined. Private equity funds raised across BRICS serve as the proxy for private equity investments. The study reveals that GDP growth and real interest rate are both statistically significant and positively related to private equity investments across the BRICS countries. Furthermore, market capitalization growth and corporate tax rates are statistically significant, and both are found to be negatively related to the dependent variable.

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