Document Type
Article
Publication Title
University of Chicago Law Review
Publication Date
2009
ISSN
0041-9494
Page Number
219
Keywords
private equity, derivatives, corporate governance
Disciplines
Commercial Law | Law | Marketing Law
Abstract
Private equity has reaped large rewards in recent years. We claim that one major reason for this success is due to the corporate governance advantages of private equity over the public corporation. We argue that the development of substantial derivative contracts and trading has significantly weakened the governance of public corporations and has created a need for financially sophisticated directors and much closer supervision of management. The private equity model delivers these benefits and allows corporations to be better governed, creating wealth gains for investors.
Recommended Citation
Randall Thomas and Ronald W. Masulis,
Does Private Equity Create Wealth? The Effects of Private Equity and Derivatives on Corporate Governance, 76 University of Chicago Law Review. 219
(2009)
Available at: https://scholarship.law.vanderbilt.edu/faculty-publications/192