Private Equity and Local Public Finances

Olbert, Marcel; Severin, Peter

doi:10.2139/ssrn.3287687

Cited by 3 publications

(5 citation statements)

References 76 publications

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“…Companies that are not publicly traded can own up to 30%. Corporate ventures receive a 20% tax credit and untaxed profits from selling investments if reinvested within three years (Caselli, 2009;Olbert & Severin, 2020). Some industries may restrict foreign investors, but most emerging countries allow private investments in all sectors.…”

Section: Entrepreneurial Tax Incentive and Tax Filing (Tl1)mentioning

confidence: 99%

Unveiling Best Practices for Competitive Edge: A Literature Review on Enhancing Private Equity Competitiveness in India

2024

European Economic Letters

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The Indian private equity industry has grown rapidly in the past decade. India must follow best practices to compete globally and attract investors. This study examined the best practices in six areas with the help of around 170 past research papers: Economic Activity, Taxation & Legal Codes, Capital Market Depth, Investor Protection & Corporate Governance, Human and Social Environment, and Entrepreneurial Culture after reviewing over 170 relevant articles. Private equity consulting firms, Preqin, and Private Equity International provided data for the study. The paper seeks to pinpoint the research deficiencies in determining the effective strategies for Private Equity in a specific sector, sub-variable, or independent factors when the findings are unclear. This research covers best practices to boost India's private equity competitiveness globally. Most of the research papers confirm that any developing country such as India can attract private equity investments and become a global capital hub by improving the legal framework, simplifying tax regulations, developing capital markets, strengthening corporate governance, and implementing investor-friendly economic policies. However, certain steps and policy changes are required cohesively to achieve the results in the long term. The outcome of this research paper will set the ground for a more detailed study to execute the policy changes and adopt the best practices at the grassroots level.

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Section: Entrepreneurial Tax Incentive and Tax Filing (Tl1)mentioning

confidence: 99%

Unveiling Best Practices for Competitive Edge: A Literature Review on Enhancing Private Equity Competitiveness in India

2024

European Economic Letters

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“…For further details, refer to Bureau van Dijk (2023). 9 We follow the procedure as in Olbert (2023), De Simone and, Severin (2023, andKaenzig, Marenz, and. This approach has the advantage of ensuring a corporate entity is identified as the parent entity, meaning that that this corporate entity typically has headquarters functions and produces consolidated financial statements, such that the identified majority-owned subsidiaries can be seen as one economic entity.…”

Section: A Note On the Coverage Of Worldwide Corporate Legal Entities...mentioning

confidence: 99%

“…not include large private MNEs from the US and other countries without financial reporting disclosure mandates for non-listed firms, such that our descriptive statistics will constitute a lower bound. For example, our statistics do not include companies owned by non-listed US private equity firms, some of which have extensive tax haven operations (Olbert and Severin 2023;Abraham et al 2023). 10 In our sample of MNEs with available consolidated financial information, the average (median) MNE has 55.6 (11) legal entities and operates in 5.7 (3) countries.…”

Section: A Note On the Coverage Of Worldwide Corporate Legal Entities...mentioning

confidence: 99%

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Multinational firms in tax havens – Corporate motives, regulatory countermeasures, and recent statistics

Submitter,

Olbert,

Spengel

et al. 2023

SSRN Journal

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“…A real tax advantage is a form of joint tax arbitrage that exploits differences in the tax positions of fund managers and their investors [15]. By analyzing over 12000 private equity data in Europe, the effective tax rates of sample firms decrease by 15% [16]. Polsky classified the main idea of tax arbitrage strategy -the use of "carried interest" into three parts [17].…”

Section: Tax Issuesmentioning

confidence: 99%

An Overview on Private Equity Leveraged Buyouts

Chen¹,

Wang²

2022

Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)

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It has been over three decades since Jensen brought up the new form of ownership in private equity, today, private equity plays a significant role in financial markets. Moreover, private equity and other forms of firms offer different impacts on the whole economy as well as financial markets. To begin with, we provide an overview of the development of private equity as well as leveraged buyouts (LBO). Furthermore, we summarize and give a further analysis about the three key factors of private equity: management fee issues, taxation issues, and the role in society are included. We realize that private equity fees show little sensitivity to both internal and external factors. On the taxation side, the main argument focuses on whether the original tax rules are the primary cause that led to the "tax tunnelling". On the economic side, LBO has influences on employment rate and wage level. Overall, by the advancement of society, people start to realize the significant character private equity plays in the economy, and private equity itself occupies a decisive position in the operation of firms, yet there are unsolved issues and arguments about private equity and LBO, specifically, how the operation of private equity effect itself (fees, taxes, etc.) and exogenous factors, we provide the possibilities for further research at the end of the paper.

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Private Equity and Local Public Finances

Cited by 3 publications

References 76 publications

Unveiling Best Practices for Competitive Edge: A Literature Review on Enhancing Private Equity Competitiveness in India

Unveiling Best Practices for Competitive Edge: A Literature Review on Enhancing Private Equity Competitiveness in India

Multinational firms in tax havens – Corporate motives, regulatory countermeasures, and recent statistics

An Overview on Private Equity Leveraged Buyouts

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