Recourse to independent directors by private equity investors per se is not tied to performance increases. We draw this conclusion from analyzing a unique data set representative of the Italian context: all deals realized by Italian closed-end funds from 1999 to 2003. Our study shows that independent directors impact the rate of return only on deals which require very specific skills, i.e. turnaround and buyout investments. Besides, busy directors do not seem to affect negatively the internal rate of return. Finally, independent directors tend to resign when performance is unsatisfactory and consent to shave losses when performances are negative.

Corporate governance and independent directors: behind private equity investment performance

CASELLI, STEFANO;GANDOLFI, GINO;GATTI, STEFANO;ROSSOLINI, MONICA
2008

Abstract

Recourse to independent directors by private equity investors per se is not tied to performance increases. We draw this conclusion from analyzing a unique data set representative of the Italian context: all deals realized by Italian closed-end funds from 1999 to 2003. Our study shows that independent directors impact the rate of return only on deals which require very specific skills, i.e. turnaround and buyout investments. Besides, busy directors do not seem to affect negatively the internal rate of return. Finally, independent directors tend to resign when performance is unsatisfactory and consent to shave losses when performances are negative.
2008
Corporate governance and independent directors: behind private equity investment performance
Caselli, Stefano; Gandolfi, Gino; Gatti, Stefano; Rossolini, Monica
File in questo prodotto:
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11565/3833698
 Attenzione

Attenzione! I dati visualizzati non sono stati sottoposti a validazione da parte dell'ateneo

Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus ND
  • ???jsp.display-item.citation.isi??? ND
social impact