This study analyzes the differences between companies (partially) owned by private equity (PE) investors and similar public companies. It documents that companies with PE minority ownership provide higher managerial incentives to their top management. In contrary to evidence from the United States, it was found that the PE investors of the study's sample focused on cash based performance bonuses. Furthermore, previous findings concerning the managerial equity ownership could not be confirmed. Instead of an increased executive stock ownership, evidence was found that the PE investors of the sample targeted in particular companies with a low fraction of managerial stock ownership. Overall, evidence of a strive for short-term success by the PE investors is presented.     «

This study analyzes the differences between companies (partially) owned by private equity (PE) investors and similar public companies. It documents that companies with PE minority ownership provide higher managerial incentives to their top management. In contrary to evidence from the United States, it was found that the PE investors of the study's sample focused on cash based performance bonuses. Furthermore, previous findings concerning the managerial equity ownership could not be confirmed. In...     »