Private equity and financial distress: A bibliometric literature review

IF 6.3 2区经济学 Q1 BUSINESS, FINANCE

Research in International Business and Finance Pub Date : 2025-02-01 DOI:10.1016/j.ribaf.2024.102674

Cristina De Silva , Belinda Laura Del Gaudio , Anna Gervasoni , Michele Lertora

{"title":"Private equity and financial distress: A bibliometric literature review","authors":"Cristina De Silva , Belinda Laura Del Gaudio , Anna Gervasoni , Michele Lertora","doi":"10.1016/j.ribaf.2024.102674","DOIUrl":null,"url":null,"abstract":"<div><div>This paper presents a bibliometric literature review to examine the impact of private equity (PE) on portfolio companies' financial distress. Due to PE's increasing role in the economy, this topic is of growing interest. Our analysis encompasses 151 publications, exploring co-occurrence networks, co-citation patterns, publication patterns and key research streams. The existing literature shows that PE-backed companies' risk of distress increases following a buyout. However, when controlling for leverage, this does not result in higher bankruptcy rates compared to non-PE-backed companies. Furthermore, PE-backed companies are more likely than non-PE-backed peers to avoid insolvency in the event of financial distress. This ability to manage financial distress effectively is attributed to corporate governance mechanisms based on active and concentrated ownership, availability of financial resources, and reputational concerns. In addition, the study identifies future research avenues and provides valuable insights for academic scholars, industry practitioners, and policymakers alike.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"74 ","pages":"Article 102674"},"PeriodicalIF":6.3000,"publicationDate":"2025-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Research in International Business and Finance","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0275531924004677","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}

引用次数: 0

Abstract

This paper presents a bibliometric literature review to examine the impact of private equity (PE) on portfolio companies' financial distress. Due to PE's increasing role in the economy, this topic is of growing interest. Our analysis encompasses 151 publications, exploring co-occurrence networks, co-citation patterns, publication patterns and key research streams. The existing literature shows that PE-backed companies' risk of distress increases following a buyout. However, when controlling for leverage, this does not result in higher bankruptcy rates compared to non-PE-backed companies. Furthermore, PE-backed companies are more likely than non-PE-backed peers to avoid insolvency in the event of financial distress. This ability to manage financial distress effectively is attributed to corporate governance mechanisms based on active and concentrated ownership, availability of financial resources, and reputational concerns. In addition, the study identifies future research avenues and provides valuable insights for academic scholars, industry practitioners, and policymakers alike.

查看原文本刊更多论文

求助全文

约1分钟内获得全文求助全文

来源期刊

Research in International Business and Finance BUSINESS, FINANCE-

CiteScore

11.20

自引率

9.20%

发文量

240

期刊介绍： Research in International Business and Finance (RIBAF) seeks to consolidate its position as a premier scholarly vehicle of academic finance. The Journal publishes high quality, insightful, well-written papers that explore current and new issues in international finance. Papers that foster dialogue, innovation, and intellectual risk-taking in financial studies; as well as shed light on the interaction between finance and broader societal concerns are particularly appreciated. The Journal welcomes submissions that seek to expand the boundaries of academic finance and otherwise challenge the discipline. Papers studying finance using a variety of methodologies; as well as interdisciplinary studies will be considered for publication. Papers that examine topical issues using extensive international data sets are welcome. Single-country studies can also be considered for publication provided that they develop novel methodological and theoretical approaches or fall within the Journal''s priority themes. It is especially important that single-country studies communicate to the reader why the particular chosen country is especially relevant to the issue being investigated. [...] The scope of topics that are most interesting to RIBAF readers include the following: -Financial markets and institutions -Financial practices and sustainability -The impact of national culture on finance -The impact of formal and informal institutions on finance -Privatizations, public financing, and nonprofit issues in finance -Interdisciplinary financial studies -Finance and international development -International financial crises and regulation -Financialization studies -International financial integration and architecture -Behavioral aspects in finance -Consumer finance -Methodologies and conceptualization issues related to finance