TY  - JOUR
TI  - Operational Performance and Capital Structure of Private Equity Portfolio Companies: Evidence from Central Europe
T2  - HSE Economic Journal 
IS  - HSE Economic Journal 
KW  - private equity
KW  - operational performance
KW  - capital structure
AB  - The main investment strategy of the private equity funds includes the investment in the private companies, the value creation and selling it to the strategic investor, other private equity fund or the management. For the understanding of the value creation process, it is important to understand what is happening with companies during the period when they backed by the funds. The main objective of the article is analysis of the operational performance and capital structure of the Private Equity funds' portfolio companies. The main methods which were used in the paper were methods of mathematical, statistical and econometric analyses. The descriptive statistics was used for the analysis of the central tendency of the sample. Non-parametric Wilcoxon - Mann - Whitney test was used for mean difference test of operational performance and capital structure of the portfolio companies. Regression analysis was used to determine the factors which influence the operational performance of the portfolio companies.Sales, assets and debt of portfolio companies increased during the period under review. The difference in means of operational performance and capital structure ratios is statistically significant. The main factors which influenced the operational performance of portfolio companies are profitability, debt ratio and management turnover of the portfolio companies. Based on the econometric analysis we can say that the Private Equity funds make an influence on the operational performance of the portfolio companies in the Central Europe. In general, the operational performance of the Private Equity funds’ portfolio companies decreased after the buyout, but, interestingly, the operational performance of companies which had operational loss before the buyout increased. In general, conclusions of the study are in compliance with similar studies, while differences in macroeconomic and institutional environment of Central Europe impose limitations on analysis.
AU  - Anton Prokhorenko
UR  - https://ej.hse.ru/en/2016-20-3/195215949.html
PY  - 2016
SP  - 513-538
VL  - 20