Drivers of Private Equity Investment in CEE and Western European Countries

Arbeitspapier

A strong private equity market is a cornerstone for commercialization and innovation in modern economies. However, substantial differences exist in the relative amounts raised and invested in private equity across European countries. We investigate the macro-determinants of private equity investment in Europe, focusing on the comparison between CEE and Western European countries. Our estimations are based on a data set running from 2001 to 2008 and covers 14 Western European and three CEE countries. Applying robust estimation techniques we identify a 'robust' set of determinants of private equity activity in both regions. We find similarities as well as differences in the driving forces of private equity investments in Western European and CEE countries. Our results suggest that commercial bank lending, equity market capitalization, unit labour costs and corporate tax rates are significant determinants of private equity activity.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: FINESS Working Paper ; No. D.3.5

Classification and Topics

• Classification: Wirtschaft ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models ; Model Evaluation, Validation, and Selection ; Investment; Capital; Intangible Capital; Capacity ; Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies
• Subject: Private Equity ; Venture Capital ; Extreme Bounds Analysis ; Central and Eastern Europe

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bernoth, Kerstin ; Colavecchio, Roberta ; Sass, Magdolna
• Event: Veröffentlichung
• (who): Deutsches Institut für Wirtschaftsforschung (DIW)
• (where): Berlin
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/119494
• Last update: 10.03.2025, 11:43 AM CET