Board independence and PIPE offerings
| Autor: | Ching Yu Hsu, Chia Wei Huang, Sheng-Syan Chen |
|---|---|
| Rok vydání: | 2021 |
| Předmět: |
Finance
Economics and Econometrics 050208 finance business.industry media_common.quotation_subject Corporate governance 05 social sciences Agency cost Venture capital Investment (macroeconomics) Independence Private investment in public equity Issuer 0502 economics and business ComputingMilieux_COMPUTERSANDSOCIETY Endogeneity 050207 economics business media_common |
| Zdroj: | International Review of Economics & Finance. 75:478-500 |
| ISSN: | 1059-0560 |
| DOI: | 10.1016/j.iref.2021.04.018 |
| Popis: | Using hand-collected governance data and a two-stage least squares approach to control for the endogeneity of firm governance structure, this paper shows that private investments in public equity (PIPE) issuers with higher board independence grant investors lower price discounts and experience improved announcement effects, improved long-run operating and stock performance, and increased investment. Board independence also encourages issuers to place more shares with venture capital investors, and fewer shares with managerial investors. These findings suggest that strong independent governance can mitigate the agency costs inherent in PIPEs. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|
Full Text from ScienceDirect