Size matters: Unpacking the relationship between institutional investor size and private equity asset allocation within diverse institutional contexts

IF 5.4 2区经济学 Q1 BUSINESS, FINANCE

Journal of International Financial Markets Institutions & Money Pub Date : 2024-02-02 DOI:10.1016/j.intfin.2024.101958

Douglas Cumming , Muhammad Zubair Khan , Naimat U. Khan , Zafir Ullah Khan

{"title":"Size matters: Unpacking the relationship between institutional investor size and private equity asset allocation within diverse institutional contexts","authors":"Douglas Cumming , Muhammad Zubair Khan , Naimat U. Khan , Zafir Ullah Khan","doi":"10.1016/j.intfin.2024.101958","DOIUrl":null,"url":null,"abstract":"<div><p>This study examines the relationship between institutional investors’ size and their inclination towards private equity investments, hypothesizing a U-shaped pattern. It also explores how this relationship is influenced by the institutional context. Using a dataset of 5668 firms across 52 countries from 1991 to 2017, we observe that small and large institutional investors exhibit a stronger preference for private equity compared to intermediate-sized counterparts. Smaller investors show heightened interest in private equity within favorable contexts, while larger investors pursue such opportunities in unfavorable contexts. Our research offers valuable insights for policymakers and investors of diffferent sizes making private equity investments in diverse institutional contexts.</p></div>","PeriodicalId":48119,"journal":{"name":"Journal of International Financial Markets Institutions & Money","volume":"92 ","pages":"Article 101958"},"PeriodicalIF":5.4000,"publicationDate":"2024-02-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S1042443124000246/pdfft?md5=6cfd11bec07df497388690d08d79b766&pid=1-s2.0-S1042443124000246-main.pdf","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of International Financial Markets Institutions & Money","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S1042443124000246","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}

引用次数: 0

Abstract

This study examines the relationship between institutional investors’ size and their inclination towards private equity investments, hypothesizing a U-shaped pattern. It also explores how this relationship is influenced by the institutional context. Using a dataset of 5668 firms across 52 countries from 1991 to 2017, we observe that small and large institutional investors exhibit a stronger preference for private equity compared to intermediate-sized counterparts. Smaller investors show heightened interest in private equity within favorable contexts, while larger investors pursue such opportunities in unfavorable contexts. Our research offers valuable insights for policymakers and investors of diffferent sizes making private equity investments in diverse institutional contexts.

查看原文本刊更多论文

规模很重要：在不同机构背景下解读机构投资者规模与私募股权投资资产配置之间的关系

本研究探讨了机构投资者的规模与其对私募股权投资的倾向之间的关系，并假设两者之间存在 U 型模式。研究还探讨了这种关系如何受到机构背景的影响。利用 1991 年至 2017 年 52 个国家 5668 家公司的数据集，我们观察到，与中等规模的机构投资者相比，小型和大型机构投资者表现出更强烈的私募股权投资偏好。在有利的情况下，小型投资者对私募股权表现出更大的兴趣，而在不利的情况下，大型投资者则会追逐此类机会。我们的研究丰富了有关机构投资者规模及其对私募股权投资重要性的文献，为非流动资产市场的政策制定者和投资者提供了宝贵的见解。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Journal of International Financial Markets Institutions & Money Multiple-

CiteScore

6.60

自引率

10.00%

发文量

142

期刊介绍： International trade, financing and investments, and the related cash and credit transactions, have grown at an extremely rapid pace in recent years. The international monetary system has continued to evolve to accommodate the need for foreign-currency denominated transactions and in the process has provided opportunities for its ongoing observation and study. The purpose of the Journal of International Financial Markets, Institutions & Money is to publish rigorous, original articles dealing with the international aspects of financial markets, institutions and money. Theoretical/conceptual and empirical papers providing meaningful insights into the subject areas will be considered. The following topic areas, although not exhaustive, are representative of the coverage in this Journal. • International financial markets • International securities markets • Foreign exchange markets • Eurocurrency markets • International syndications • Term structures of Eurocurrency rates • Determination of exchange rates • Information, speculation and parity • Forward rates and swaps • International payment mechanisms • International commercial banking; • International investment banking • Central bank intervention • International monetary systems • Balance of payments.