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Institutional Investment Horizons and the Stock Performance of Private Equity Placements: Evidence from the Taiwanese Listed Firms.
- Source :
- Review of Pacific Basin Financial Markets & Policies; Jun2014, Vol. 17 Issue 2, p1-30, 30p
- Publication Year :
- 2014
-
Abstract
- This study examines how the investment horizon of the institutional shareholders of a firm affects the stock performance of private equity placements. The results show that firms with long-term institutional investors receive significantly positive abnormal returns around the offering announcement. Post-issue stock price underperformance is especially pronounced in firms held by short-term institutional investors. These findings suggest that private placement firms with long-term institutional investors acquire certification and monitoring-related benefits and thus reduce the information asymmetry and entrenchment costs between managers and external investors. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 02190915
- Volume :
- 17
- Issue :
- 2
- Database :
- Complementary Index
- Journal :
- Review of Pacific Basin Financial Markets & Policies
- Publication Type :
- Academic Journal
- Accession number :
- 96424058
- Full Text :
- https://doi.org/10.1142/S021909151450009X