Private equity, disclosure quality, and audit quality
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baik-kbaik-sm-sloan-2021-thesis.pdf
Description
Thesis PDF
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686.54 KB
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8f02a35a1141c402e97405a392e442d5
Author(s)
Baik, Brian (Brian Kunho)
Advisor(s)
Verdi, Rodrigo S.
Date Issued
September 2021
Publisher
Massachusetts Institute of Technology
Abstract
I study the influence of disclosure/audit quality on private equity funds’ investment decisions, and the relationship between private equity ownership and disclosure/audit quality. Using Preqin and FAME data, I find that PE funds are more likely to invest in firms with superior financial statement transparency (disclosure quality) and in firms that employ big 4 auditors (audit quality). Conversely, I find that PE ownership is associated with audit quality, but not for disclosure quality.
MIT Department
Sloan School of Management
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