RT Article
T1 Private Equity and the Public Good
JF Journal of business ethics
VO 96
IS 2
SP 249
OP 263
A1 Morrell, Kevin
A1 Clark, Ian
LA English
PB Springer Science + Business Media B. V
YR 2010
UL https://www.ixtheo.de/Record/178563979X
AB 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.
K1 Virtue
K1 Private
K1 Public Good
K1 Public Interest
K1 Equity
K1 Common Good
DO 10.1007/s10551-010-0463-8