The Private Equity Reputation, Ownership and IPO Equity Duration

Abstract

Abstract:

Inorder to analyze the motivation of private equity participation in the IPO under the current institutional background, this paper selects the equity duration of private equity before IPO as the proxy of the behavior motive, investigates the characteristics of private equity on equity duration. We find that the lower private equity reputation leads to shorter equity duration before IPO, which is in conformity with grandstanding hypothesis, the government-backed private equity tend to have longer duration, but the effect is not significant. And further analysis shows that the longer equity duration before IPO, the better performance after IPO, but the positive effects of duration on the performance is weakened after the expiration of lockup period.

Key words: private equity reputation, ownership, equity duration, corporate performance, lockup period

Hu Zhiying, Wu Xiancong, Guo Jianzhu. The Private Equity Reputation, Ownership and IPO Equity Duration[J]. , 2015, 27(12): 39-49.

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