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dc.contributor.advisorHealy, Paul
dc.contributor.authorWelch, Kyle T.
dc.date.accessioned2021-06-07T11:20:58Z
dash.embargo.terms2016-06-24
dc.date.created2014
dc.date.submitted2014
dc.identifier.citationWelch, Kyle T. 2014. Private Equity's Diversification Illusion: Economic Comovement and Fair Value Reporting. Doctoral dissertation, Harvard Business School.
dc.identifier.other3628663
dc.identifier.urihttps://nrs.harvard.edu/URN-3:HUL.INSTREPOS:37367806*
dc.description.abstractThis study examines how financial reporting practices have shaped private equity's claims to diversification. Despite research showing that private equity lacks unique economic exposure, private equity firms and trade associations continue to promote private equity's diversification as a key investment benefit. I show that returns based on prior methods of valuation understate the economic comovement of private equity with the market, creating a diversification illusion. As private equity valuation methodologies have changed private equity returns reveal increased systematic risk and correlation to equity markets. Moreover private equity firms also encounter higher--not lower--costs when accessing capital under new valuation methods, a finding at odds with public--market research.
dc.format.mimetypeapplication/pdf
dc.language.isoen
dash.licenseLAA
dc.subjectbeta
dc.subjectComovement
dc.subjectcovariance risk
dc.subjectfair value
dc.subjectFAS No. 157
dc.subjectprivate equity
dc.subjectAccounting
dc.subjectFinance
dc.titlePrivate Equity's Diversification Illusion: Economic Comovement and Fair Value Reporting
dc.typeThesis or Dissertation
dash.depositing.authorWelch, Kyle T.
dash.embargo.until2016-06-24
dc.date.available2021-06-07T11:20:58Z
thesis.degree.date2014
thesis.degree.grantorHarvard Business School
thesis.degree.levelDoctoral
thesis.degree.nameD.B.A.
dc.contributor.committeeMemberLerner, Josh
dc.contributor.committeeMemberRamanna, Karthik
dc.contributor.committeeMemberRiedl, Edward
dc.contributor.committeeMemberWang, Charles
dc.type.materialtext
thesis.degree.departmentAccounting & Management
dash.author.emailkylewelch@gmail.com


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