Corporate Governance and Private Equity Placements

被引:3
作者
Yeh, Yin Hua [1 ]
Shu, Pei Gi [2 ]
Kao, Ming Sung [3 ]
机构
[1] Natl Chiao Tung Univ, Grad Inst Finance, Hsinchu, Taiwan
[2] Fu Jen Catholic Univ, Grad Inst Management, New Taipei, Taiwan
[3] Fu Jen Catholic Univ, Dept Finance & Int Business, New Taipei, Taiwan
关键词
Corporate governance; private equity placement; signaling;
D O I
10.1142/S0219091515500137
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
In a private placement, the identity of the block purchaser has attracted much attention, while the characteristics of the issuing firm are sparsely noted. We hypothesize that the market concerns about the coupling between the issuing firm and the new block investor. Our empirical findings from a sample of 213 private equity placements in Taiwan indicate that the announcement effect of good-governance firms is significantly higher than that of bad-governance firms. Moreover, the induction of outside block investor further punctuates the coupling effect: the coupling between good-governance (poor-governance) firms and outside block investors yields even higher (lower) returns. Finally, the coupling effect remains significant in explaining the long-run performance of private-equity-placement firms.
引用
收藏
页数:31
相关论文
共 50 条
[31]   Signaling through private equity placements and its impact on the valuation of biotechnology firms [J].
Janney, JJ ;
Folta, TB .
JOURNAL OF BUSINESS VENTURING, 2003, 18 (03) :361-380
[32]   Equity pattern, corporate governance and performance: A study of India's corporate sector [J].
Patibandla, M .
JOURNAL OF ECONOMIC BEHAVIOR & ORGANIZATION, 2006, 59 (01) :29-44
[33]   Private Equity Characteristics, Corporate Governance and Firm Value: Empirical Evidence from Small and Medium-sized Enterprises* [J].
Li Jiujin ;
Gupta, Rakesh ;
Li Haihong ;
Qiang, Shao .
ASIAN ECONOMIC JOURNAL, 2020, 34 (02) :163-183
[34]   Equity or Debt Financing: Does Good Corporate Governance Matter? [J].
Mande, Vivek ;
Park, Young K. ;
Son, Myungsoo .
CORPORATE GOVERNANCE-AN INTERNATIONAL REVIEW, 2012, 20 (02) :195-211
[35]   The impact of equity markets and corporate governance on labour market flexibility [J].
Black, Boyd ;
Gospel, Howard ;
Pendleton, Andrew .
INTERNATIONAL JOURNAL OF HUMAN RESOURCE MANAGEMENT, 2008, 19 (10) :1792-1808
[36]   Social Responsibility Disclosure, Corporate Governance and Cost of Equity Capital [J].
Adiputra, I. Made Pradana ;
Siregar, Sylvia Veronica ;
Wardhani, Ratna .
PROCEEDINGS OF THE 6TH INTERNATIONAL ACCOUNTING CONFERENCE (IAC 2017), 2017, 55 :70-75
[37]   Legal protection of investors, corporate governance, and the cost of equity capital [J].
Chen, Kevin C. W. ;
Chen, Zhihong ;
Wei, K. C. John .
JOURNAL OF CORPORATE FINANCE, 2009, 15 (03) :273-289
[38]   Minority and majority private equity investments: firm performance and governance [J].
Battistin E. ;
Bortoluzzi P. ;
Buttignon F. ;
Vedovato M. .
Journal of Management & Governance, 2017, 21 (3) :659-684
[39]   Industrial Policy, Corporate Governance and Private Firms' Investment Efficiency [J].
Yang Mingjing .
PROCEEDINGS OF THE THIRD INTERNATIONAL SYMPOSIUM - MANAGEMENT, INNOVATION & DEVELOPMENT, BKS ONE & TWO, 2016, :1131-1138
[40]   Research on innovation of corporate governance of China's private enterprises [J].
Mu Zhirong .
Proceedings of the Eighth West Lake International Conference on SMB, 2006, :270-277