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Title: Private Equity and the Public Good
Authors: Morrell, Kevin
Clark, Ian Arthur
First Published: Oct-2010
Publisher: Springer-Verlag
Citation: Journal of Business Ethics, 2010, 96 (2), pp. 249-263
Abstract: The dominance of agency theory can reduce our collective scope to analyse private equity in all its diversity and depth. We contribute to theorisation of private equity by developing a contrasting perspective that draws on a rich tradition of virtue ethics. In doing so, we juxtapose ‘private equity’ with ‘public good’ to develop points of rhetorical and analytical contrast. We develop a typology differentiating various forms of private equity, and focus on the ‘take private’ form. These takeovers are where private equity funds are used to buy all a firm’s publicly listed shares. Take private deals reduce reporting requirements and lessen the amount of public scrutiny a firm comes under. They allow greater control of a firm’s assets and resources but also have effects in terms of the wider social fabric. The ‘public good’ and virtue ethics offer an alternative basis for theorisation of these deals. This provides a needed contrast to accounts of private equity based on agency theory.
DOI Link: 10.1007/s10551-010-0463-8
ISSN: 0167-4544
eISSN: 1573-0697
Type: Journal Article
Rights: Copyright © 2010, Springer.
Description: Full text of this item is not currently available on the LRA. The final published version may be available through the links above.
Appears in Collections:Published Articles, School of Management

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