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Private equity, earnings management and value sharing

Centre Européen de Recherche en Economie Financière et en Gestion des Entreprises - NANCY - 2021

While the consequences of private equity buyouts have generated a large body of literature, associated accounting data remains little explored. The first aim of this research is to identify the effects of private equity on the management of accounting outcomes for unlisted companies. The second aim is to determine the trade-offs in wealth sharing between the stakeholders (shareholders, employees, capital factor, banks, the State and the company itself) which have contributed to the value creation process, based on the information provided in the income statement. The research proposes a better understanding of the factors influencing the quality of the information produced by the accounting system, as well as the driving factors of value sharing among stakeholders who will rely on financial statements to allocate resources.