A Global Analysis of Private Investments in Public Equity

Dimitris Andriosopoulos, Styliani Panetsidou

Research output: Working paper

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Abstract

Raising equity capital via Private Investments in Public Equity (PIPEs) has been rising in popularity matching Seasoned Equity Offerings. We use over 10,000 PIPEs in a global setting (37 countries) during 1995-2015 to assess how institutional characteristics affect the issuers' performance. We document a significant decline in the market reaction, especially during 2004-2015, and find that firms issuing equity via PIPEs have significantly worse fundamentals and negative long-term performance globally. Finally, consistent with the law and finance literature, we show that country governance matters, as issuing firms operating in countries with better regulatory quality and higher law enforcement outperform others.
Original languageEnglish
Place of PublicationGlasgow
PublisherUniversity of Strathclyde
Pages1-52
Number of pages52
Publication statusPublished - 19 Oct 2018

Keywords

  • private investment in public equity
  • stock performance
  • cross-country differences
  • corporate governance
  • regulation

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    Andriosopoulos, D., & Panetsidou, S. (2018). A Global Analysis of Private Investments in Public Equity. (pp. 1-52). University of Strathclyde.