Private Equity and Agency Costs: an Economic Analysis

Private equity is a new and powerful form of general management. Done correctly, it can increase value in firms by closing the ‘information gap’ between shareholders and management. This can help to reduce agency costs and capture otherwise lost value.

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Bibliographic Details
Published in:Economic affairs (Harlow) 2012-10, Vol.32 (3), p.107-109
Main Author: Baldwin, Adam
Format: Article
Language:English
Subjects:
agency costs
asymmetric information
Economic theory
financial regulation
moral hazard
principal-agent problem
Private equity
Stockholders
Studies
Citations: Items that this one cites
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Description
Summary:Private equity is a new and powerful form of general management. Done correctly, it can increase value in firms by closing the ‘information gap’ between shareholders and management. This can help to reduce agency costs and capture otherwise lost value.
ISSN:0265-0665
1468-0270
DOI:10.1111/j.1468-0270.2012.02183.x