The Investment Decisions of Foreign and Local Investors in Private Equity Funds in China
We examine the investing behaviour of foreign and domestic investors in PE funds that investin China.The Chinese PE market can be considered to be a quasi-segmented market due to information constraints and legal barriers.It is also characterised by information asymmetries between domestic and foreign investors and differing investor risk appetites.The resultsshow a clear distinction between the investment attitudes of domestic and foreign investors inPE funds in China.We find that offshore investors are more likely to invest with firms that are more experienced and not government affiliated.Foreigners are also more likely to investin larger funds and funds that allocate a smaller portion of their commitments to China,whichsupports the view that they seek fund characteristics that lessen information asymmetry and provide additional diversification.We show that the size of an investor’s commitmentamount is determined by fund characteristics such as size,sequence and stage,but not by thelocation of the investor.In terms of performance,we find some evidence indicating that domestic investor backed PE funds exit a greater number of companies but that they do not realise these investments at higher exit multiples relative to PE funds supported by foreign investors.
Chinese financial markets investor behaviour private equity
Sarah Azzi Jo-Ann Suchard
Banking and Finance,Australian School of Business,University of New South Wales,Sydney,NSW,2052,Australia
国际会议
2013 China Finance Review International Conference(第六届(2013)中国金融评论国际研讨会)
上海
英文
336-387
2013-07-08（万方平台首次上网日期，不代表论文的发表时间）