PT  - JOURNAL ARTICLE
AU  - Watson, Sharon R.
AU  - George, Anthony J.
TI  - Host Country Effects on the Success of International Private Equity Investments
AID  - 10.3905/jpe.2010.13.4.017
DP  - 2010 Aug 31
TA  - The Journal of Private Equity
PG  - 17--24
VI  - 13
IP  - 4
4099  - http://jpe.pm-research.com/content/13/4/17.short
4100  - http://jpe.pm-research.com/content/13/4/17.full
AB  - Using a sample of 72 cross-border acquisitions made by U.S. and U.K. private equity firms, this article examines the effects of host-country characteristics on the success of private equity investments. The findings indicate that several aspects of the host country positively impact the rate of return of the foreign investment, including the host nation’s level of business freedom, trade protection, and government size. Conversely, the host country’s burden of taxation is negatively related to the acquisition’s rate of return. Acquisition success is not affected by the host country’s economic size, price stability, openness, corruption, or cultural distance.