Publication:
The Role of Private Equity Investments in Public Firms : International Evidence

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dc.contributor.authorDahiya, Sandeep
dc.contributor.authorKlapper, Leora
dc.contributor.authorParthasarathy, Harini
dc.contributor.authorSinger, Dorothe
dc.date.accessioned2015-02-23T21:35:16Z
dc.date.available2015-02-23T21:35:16Z
dc.date.issued2013-06
dc.description.abstractThis paper compares the raising of external equity capital from private equity investors via private investments in public equity (PIPEs) and seasoned equity offerings (SEOs) using a sample of 456 PIPEs and 1,910 SEOs drawn from nine Asian countries. Consistent with the idea that insiders attempt to time the markets, firms issuing SEOs are preceded by a significantly higher run-up in stock price compared with those issuing PIPEs. This result is consistent with the undervaluation hypothesis that states that firms are more likely to issue PIPEs when they perceive their stock to be undervalued. In contrast to the United States where this undervaluation appears to be driven by financial distress and asymmetric information, the results show PIPE and SEO issuers to be statistically undistinguishable from each other. The announcement of a PIPE offering is on average associated with a significantly higher stock market reaction compared with an issue of a SEO, suggesting that private equity investors may play a certification or monitoring role. However, a comparison of PIPE issuers' operating performance and stock market returns in the pre-issue and the post-issue periods does not detect any significant improvements.en
dc.identifierhttp://documents.worldbank.org/curated/en/2013/06/17857660/role-private-equity-investments-public-firms-international-evidence
dc.identifier.doi10.1596/1813-9450-6484
dc.identifier.urihttps://hdl.handle.net/10986/21476
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 6484
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING
dc.subjectAFFILIATED ORGANIZATIONS
dc.subjectAGENCY PROBLEMS
dc.subjectALTERNATIVE FUNDING
dc.subjectAMOUNT OF CAPITAL
dc.subjectANNUAL SALES
dc.subjectASSET RATIO
dc.subjectASSET VALUE
dc.subjectASYMMETRIC INFORMATION
dc.subjectBALANCE SHEET
dc.subjectBALANCE SHEET INFORMATION
dc.subjectBENCHMARK
dc.subjectBOOK VALUE
dc.subjectCAPITAL FUNDS
dc.subjectCAPITAL STRUCTURE
dc.subjectCORPORATE FINANCE
dc.subjectCORPORATE GOVERNANCE
dc.subjectCOUNTRY DUMMY
dc.subjectCOUNTRY FIXED EFFECTS
dc.subjectCURRENCY
dc.subjectDEBT
dc.subjectDEBT-EQUITY
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPMENT INTENSITY
dc.subjectDEVELOPMENT POLICY
dc.subjectDUMMY VARIABLE
dc.subjectDUMMY VARIABLES
dc.subjectEMERGING MARKETS
dc.subjectEQUIPMENT
dc.subjectEQUITIES
dc.subjectEQUITY CAPITAL
dc.subjectEQUITY FINANCING
dc.subjectEQUITY FINANCINGS
dc.subjectEQUITY HOLDERS
dc.subjectEQUITY INVESTMENTS
dc.subjectEQUITY ISSUANCE
dc.subjectEQUITY ISSUE
dc.subjectEQUITY ISSUES
dc.subjectEQUITY STAKES
dc.subjectEXCESS RETURN
dc.subjectFINANCIAL COMPANIES
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL DISTRESS
dc.subjectFINANCIAL ENGINEERING
dc.subjectFINANCIAL HEALTH
dc.subjectFINANCIAL STRESS
dc.subjectFINANCIAL STUDIES
dc.subjectFIRM PERFORMANCE
dc.subjectFUND MANAGERS
dc.subjectFUTURE PROSPECTS
dc.subjectGROUP OF INVESTORS
dc.subjectHEDGE FUND
dc.subjectHEDGE FUND INVESTORS
dc.subjectHEDGE FUNDS
dc.subjectHOLDING
dc.subjectHOME MARKET
dc.subjectIMPLICIT SUPPORT
dc.subjectINCOME
dc.subjectINFORMATION ASYMMETRY
dc.subjectINITIAL PUBLIC OFFERINGS
dc.subjectINSTITUTIONAL INVESTORS
dc.subjectINSURANCE
dc.subjectINSURANCE COMPANIES
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL DEVELOPMENT
dc.subjectINTERNATIONAL MARKETS
dc.subjectINVESTING
dc.subjectINVESTMENT AMOUNT
dc.subjectINVESTMENT BANKING
dc.subjectINVESTMENT DECISIONS
dc.subjectINVESTMENT OPPORTUNITIES
dc.subjectINVESTMENT PROFESSIONALS
dc.subjectINVESTMENT STRATEGY
dc.subjectINVESTMENT VEHICLES
dc.subjectINVESTOR BASE
dc.subjectIPO
dc.subjectISSUANCE
dc.subjectISSUANCES
dc.subjectLACK OF CREDIBILITY
dc.subjectLIMITED LIABILITY
dc.subjectLIMITED LIABILITY CORPORATION
dc.subjectLIQUID MARKET
dc.subjectLIQUIDITY
dc.subjectLLC
dc.subjectMARKET CAPITALIZATION
dc.subjectMARKET DISCOUNTS
dc.subjectMARKET MICROSTRUCTURE
dc.subjectMARKET PERFORMANCE
dc.subjectMARKET RETURN
dc.subjectMARKET RETURNS
dc.subjectMARKET STOCK
dc.subjectMERGERS
dc.subjectOFFER PRICE
dc.subjectOWNERSHIP CONCENTRATION
dc.subjectPENSION
dc.subjectPENSION FUNDS
dc.subjectPERFORMANCE DATA
dc.subjectPORTFOLIO
dc.subjectPOTENTIAL INVESTORS
dc.subjectPRICE INCREASE
dc.subjectPRIVATE EQUITY
dc.subjectPRIVATE EQUITY INVESTORS
dc.subjectPRIVATE INVESTMENT
dc.subjectPRIVATE INVESTMENTS
dc.subjectPRIVATE INVESTORS
dc.subjectPRIVATE PLACEMENT
dc.subjectPRIVATE PLACEMENTS
dc.subjectPRIVATE SECTOR DEVELOPMENT
dc.subjectPROFITABILITY
dc.subjectPUBLIC COMPANIES
dc.subjectPUBLIC COMPANY
dc.subjectPUBLIC EQUITIES
dc.subjectPUBLIC EQUITY
dc.subjectPUBLIC MARKET
dc.subjectPUBLIC MARKETS
dc.subjectPUBLIC REGISTRATION
dc.subjectREAL ESTATE
dc.subjectREGISTRATION PROCESS
dc.subjectRESTRICTED SHARES
dc.subjectRETAIL
dc.subjectRETAIL INVESTORS
dc.subjectRETURN ON ASSETS
dc.subjectROA
dc.subjectSALES
dc.subjectSECURITIES
dc.subjectSECURITIES ISSUANCE
dc.subjectSHARE OF EQUITY
dc.subjectSHARE PRICE
dc.subjectSHAREHOLDER
dc.subjectSHAREHOLDERS
dc.subjectSHARES OUTSTANDING
dc.subjectSTOCK EXCHANGES
dc.subjectSTOCK INDEX
dc.subjectSTOCK MARKET
dc.subjectSTOCK MARKET MOVEMENTS
dc.subjectSTOCK MARKETS
dc.subjectSTOCK PRICE
dc.subjectSTOCK PRICES
dc.subjectSTOCK RETURN
dc.subjectSTOCK RETURNS
dc.subjectSTOCKS
dc.subjectSTRATEGIC INVESTOR
dc.subjectTANGIBLE ASSETS
dc.subjectTAX
dc.subjectTELECOMMUNICATIONS
dc.subjectTOTAL DEBT
dc.subjectTRADING
dc.subjectTRADING VOLUME
dc.subjectTRANCHE
dc.subjectTRANCHES
dc.subjectTRANSACTION
dc.subjectUNDERVALUATION
dc.subjectUNDERWRITER
dc.subjectVALUE OF ASSETS
dc.subjectVENTURE CAPITAL
dc.subjectVENTURE CAPITAL FUNDS
dc.subjectWEALTH
dc.titleThe Role of Private Equity Investments in Public Firms : International Evidenceen
dspace.entity.typePublication
okr.crosscuttingsolutionareaPublic-Private Partnerships
okr.crossref.titleThe Role of Private Equity Investments in Public Firms: International Evidence
okr.date.disclosure2013-06-13
okr.date.doiregistration2025-04-10T11:47:53.417807Z
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/2013/06/17857660/role-private-equity-investments-public-firms-international-evidence
okr.globalpracticeFinance and Markets
okr.guid264861468331249549
okr.identifier.doi10.1596/1813-9450-6484
okr.identifier.externaldocumentum000158349_20130613161707
okr.identifier.internaldocumentum17857660
okr.identifier.reportWPS6484
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/06/13/000158349_20130613161707/Rendered/PDF/WPS6484.pdfen
okr.topicMacroeconomics and Economic Growth::Investment and Investment Climate
okr.topicMacroeconomics and Economic Growth::Markets and Market Access
okr.topicEconomic Theory and Research
okr.topicPrivate Sector Development::Emerging Markets
okr.topicFinance and Financial Sector Development::Debt Markets
okr.unitFinance and Private Sector Development Team, Development Research Group
relation.isAuthorOfPublicatione0a9502f-8574-53b5-bf27-732f5a6026e2
relation.isAuthorOfPublication.latestForDiscoverye0a9502f-8574-53b5-bf27-732f5a6026e2
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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