Why Are Private Equity Transactions Insured? A Neo-Institutional Theory Perspective

Adams, Mike; Kastrinaki, Zafeira

doi:10.5465/amp.2021.0120

Cited by 3 publications

(2 citation statements)

References 72 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Underwriters choose to collaborate by forming syndicates. This recurrent mode of collaboration profoundly impacts the relationships among underwriters (Adams and Kastrinaki, 2022) [22]. As core intermediary institutions in the IPO process, the primary task of underwriters is to guide and coordinate various financial institutions in integrating and disclosing information, as well as to facilitate the IPO process (Busaba et al, 2001) [23].…”

Section: Underwriter Networkmentioning

confidence: 99%

Underwriter Discourse, IPO Profit Distribution, and Audit Quality: An Entropy Study from the Perspective of an Underwriter–Auditor Network

Yang,

Tai,

Cao

et al. 2024

Entropy

View full text Add to dashboard Cite

Underwriters play a pivotal role in the IPO process. Information entropy, a tool for measuring the uncertainty and complexity of information, has been widely applied to various issues in complex networks. Information entropy can quantify the uncertainty and complexity of nodes in the network, providing a unique analytical perspective and methodological support for this study. This paper employs a bipartite network analysis method to construct the relationship network between underwriters and accounting firms, using the centrality of underwriters in the network as a measure of their influence to explore the impact of underwriters’ influence on the distribution of interests and audit outcomes. The findings indicate that a more pronounced influence of underwriters significantly increases the ratio of underwriting fees to audit fees. Higher influence often accompanies an increase in abnormal underwriting fees. Further research reveals that companies underwritten by more influential underwriters experience a decline in audit quality. Finally, the study reveals that a well-structured audit committee governance and the rationalization of market sentiments can mitigate the negative impacts of underwriters’ influence. The innovation of this paper is that it enriches the content related to underwriters by constructing the relationship network between underwriters and accounting firms for the first time using a bipartite network through the lens of information entropy. This conclusion provides new directions for thinking about the motives and possibilities behind financial institutions’ cooperation, offering insights for market regulation and policy formulation.

show abstract

Section: Underwriter Networkmentioning

confidence: 99%

Underwriter Discourse, IPO Profit Distribution, and Audit Quality: An Entropy Study from the Perspective of an Underwriter–Auditor Network

Yang,

Tai,

Cao

et al. 2024

Entropy

View full text Add to dashboard Cite

show abstract

“…However, the benefits of PE/VC are often accompanied by various uncertainties [ 2 ], such as demand uncertainty [ 3 ], valuation uncertainty [ 4 ], policy uncertainty [ 5 ] and corporate environmental uncertainty [ 6 ], among others. These uncertainties may have an impact on the decision-making, investment returns and exit strategies of PE/VC investments.…”

Section: Introductionmentioning

confidence: 99%

Effects of partial demand uncertainty reduction on private equity financing in small and medium-sized enterprises: A supply chain perspective

Deng,

Yao,

Chen

et al. 2024

PLoS ONE

View full text Add to dashboard Cite

The effect of demand uncertainty reduction (DUR) on supply chain management has received tremendous attention. From a financial perspective, studying the impact of DUR is equally significant. This study explores the relationship between DUR and private equity (PE) financing in retail enterprises within a supply chain, which comprises a dominant supplier and a subordinate retailer. This article establishes decision models for a retailer backed by PE under three market demand conditions: range, mean, and range with mean. The study further investigates the impact of partial demand uncertainty reduction (PDUR) on the retailer and PE through comparative analysis of these scenarios. To address incomplete market demand information during the decision-making process, the study employs the minimax regret criterion to construct and solve the model. An intriguing finding of this study is that contrary to intuition, PDUR not only fails to promote PE but also reduces the retailer’s willingness to finance and decreases the asset size for both the retailer and PE. In addition, the better the growth potential for the retail enterprise, the more severe the negative impact brought about by PDUR. Moreover, the impact of PDUR on supplier and supply chain performance is two-fold. PDUR based on range information has a negative impact on the expected profit of the supplier and the supply chain, while PDUR based on mean information has a positive impact on their expected profit.

show abstract

How Should the Learning Environment Change Entrepreneurship Education in the Era of the Fourth Industrial Revolution?

Xiao,

Han

2024

International Journal of Human–Computer Interaction

View full text Add to dashboard Cite

Why Are Private Equity Transactions Insured? A Neo-Institutional Theory Perspective

Cited by 3 publications

References 72 publications

Underwriter Discourse, IPO Profit Distribution, and Audit Quality: An Entropy Study from the Perspective of an Underwriter–Auditor Network

Underwriter Discourse, IPO Profit Distribution, and Audit Quality: An Entropy Study from the Perspective of an Underwriter–Auditor Network

Effects of partial demand uncertainty reduction on private equity financing in small and medium-sized enterprises: A supply chain perspective

How Should the Learning Environment Change Entrepreneurship Education in the Era of the Fourth Industrial Revolution?

Contact Info

Product

Resources

About