Manager Mobility and Private Equity Syndications from the Perspective of Coupling Networks: Evidence from China's Private Equity Industry

This study explores whether manager mobility can influence syndications between private equity (PE) firms by constructing coupling network models. Using data from China's private equity market from 1993 to 2017, we found that driving forces, resistant forces, and network structure play significant roles in determining resource flows between PE firms. Specifically, driving forces indicate that managers moving from domestic and foreign PE firms to state-owned PE firms are more likely to induce syndications. Furthermore, if the manager is promoted when changing jobs, mobility is likely to enhance the flow of resources. Resistant forces indicate that increased geographical distance reduces syndications. As for the influence of structure, if managers leave PE firms with higher status, they are more likely to induce syndications. This study contributes to the coupling network literature by providing a clarified three-factor framework. By exploring the characteristic of managers in state-owned private equity firms, we specified the syndication theory in China. This study can help private equity firms hire valuable managers and expand syndication networks in practice. © 2020 Tsinghua University Press.