TY - JOUR T1 - Host Country Effects on the Success of International Private Equity Investments JF - The Journal of Private Equity SP - 17 LP - 24 DO - 10.3905/jpe.2010.13.4.017 VL - 13 IS - 4 AU - Sharon R. Watson AU - Anthony J. George Y1 - 2010/08/31 UR - https://pm-research.com/content/13/4/17.abstract N2 - 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.TOPICS: Private equity, developed, statistical methods, legal/regulatory/public policy ER -