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Research Repository

My research focuses on two areas (with a heavy recent emphasis on area #1):

(1) Private Equity & Venture Capital

(2) Bank Regulation

All my research is empirical and, more often than not and particularly in Private Equity and Venture Capital, involves extensive manual data collection from obscure, complex legal or very expensive sources. Although the resulting work is rarely 'mainstream', I believe true knowledge - especially in areas as opaque and inaccessible as Alternative Investments - is oftentimes only created by digging through, compiling and making sense of the raw underlying data no one else is willing to obsess over.

Over the years and in many a long night, I compiled some data sets (and wrote some papers) to help shed light on a couple of previously unanswered questions on topics such as compensation structures in Private Equity, contracting dynamics in Venture Capital, LBO (under-)performance, or corporate governance and risks in banking.

While I can't make the actual articles available on this site (journal paywalls...), I am happy to share the data sets in the hopes of facilitating future research on the topics. Even after 30+ years of research, the inner workings of Venture Capital and Private Equity are still not fully understood - and they keep evolving rapidly - so I wanna support my little niche research community in the spirit of knowledge creation in any way I can.

Purpose of this part of my website is therefore to give an overview of my current and past research, and to link all papers to the respective data sets that can be found in the 'Data' section of the website.

Inquire About

Research Collaborations

Get in touch if you are interested in collaborating on research projects, and/or if you'd like to know more about a specific project.

Working Papers

Below is a list of current working papers.

Long Goodbyes: Why Do Private Equity Funds Hold onto Public Equity?

Authors:

Status:

Conferences (selected):

Tim Jenkinson, Howard Jones and Christian Rauch

Revise & Resubmit at Management Science

Presented at American Finance Association (AFA) Annual Meeting, PERC Private Equity Research Symposium (Oxford)

Main Question

Contrary to popular belief, Private Equity funds rarely sell shares in their portfolio companies at the time of their exit - why is that? Superior trading ability of shares? Value increase post-IPO? Fee collection? Lockup periods?

Main Result

The funds hold onto the shares for about 3 years post-IPO. Even though they use seemingly active trading strategies in their sell-downs, they don't outperform the market - and hold onto poorly performing stocks too long, all while charging exorbitant fees to investors.

Shareholder Rights and Share Pricing

Authors:

Status:

Conferences (selected):

Björn Imbierowicz and Christian Rauch

Currently Putting Finishing Touches on First Draft

Presented at AUS Brown Bag Seminar

Main Question

What is the relationship between share pricing and share rights? Are shares with different contractual (shareholder) rights priced differently - and do companies with different share classes and -rights have different valuations across those shares?

Main Result

Share rights have a big impact on the way shares are priced - so much so that the same investor prices (and values) different share classes that are issued by the same company differently if they have different rights. Consequently, companies with different share classes and -rights have more than 'one' valuation.

Full Paper

coming
Q3 2024

Work in Progress

Below is a list of projects that are in 'work-in-progress' stages. Analyses are being finalized and the papers have yet to be written.

How Do Banks Create Value? Let Me Count The Ways

Authors:

Status:

Conferences (selected):

Allen N. Berger, Christa Bouwman, Björn Imbierowicz  and Christian Rauch

Currently Working on First Draft

Presented at Financial Intermediation Research Society (FIRS) Annual Meeting

Main Question

Theoretical research proposes several ways in which banks create value, all of which are linked to liquidity creation. We test these channels empirically in one unifying framework to determine the source of bank value creation.

Main Result

All five channels are confirmed - but results vary strongly by bank size. Competition, capital, economic shocks, or deposit insurance play, however, no role.

Abstract

coming

2024

Full Paper

coming
2024

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