Buyout Activity: The Impact of Aggregate Discount Rates

被引：12

作者：

Haddad, Valentin ^{[1
,2
]}

Loualiche, Erik ^{[3
]}

Plosser, Matthew ^{[4
]}

机构：

[1] Princeton Univ, Princeton, NJ 08544 USA

[2] NBER, Cambridge, MA 02138 USA

[3] MIT, Sloan Sch Management, Cambridge, MA 02139 USA

[4] Fed Reserve Bank New York, New York, NY 10045 USA

来源：

JOURNAL OF FINANCE | 2017年 / 72卷 / 01期

关键词：

EXPECTED STOCK RETURNS; PRIVATE EQUITY FUNDS; INVESTOR SENTIMENT; FINANCIAL STRUCTURE; MERGER WAVES; CASH FLOW; PERFORMANCE; MARKET; FLUCTUATIONS; DETERMINANTS;

D O I：

10.1111/jofi.12464

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

Buyout booms form in response to declines in the aggregate risk premium. We document that the equity risk premium is the primary determinant of buyout activity rather than credit-specific conditions. We articulate a simple explanation for this phenomenon: a low risk premium increases the present value of performance gains and decreases the cost of holding an illiquid investment. A panel of U.S. buyouts confirms this view. The risk premium shapes changes in buyout characteristics over the cycle, including their riskiness, leverage, and performance. Our results underscore the importance of the risk premium in corporate finance decisions.

引用

页码：371 / 414

页数：44

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