Christian Riis Flor, Emil Tilgaard Jensen, Alexander Schandlbauer
{"title":"Co-Investments in Private Equity: Do Investor Types Matter?","authors":"Christian Riis Flor, Emil Tilgaard Jensen, Alexander Schandlbauer","doi":"10.1111/eufm.12536","DOIUrl":"https://doi.org/10.1111/eufm.12536","url":null,"abstract":"<div>\u0000 \u0000 <p>This paper utilizes detailed data from a Northern European private equity fund-of-funds to examine the determinants of co-investments. Unlike prior studies, we differentiate between two distinct types of co-investors: sidecar co-investors and direct co-investors. This distinction matters. Both types are more likely to participate in larger deals, but the effect is notably stronger for sidecar co-investments. Furthermore, if the internal funds available to a general partner (GP) are less than the initial capital used for the acquisition, a GP is more inclined to seek sidecar co-investors, while lower uncalled capital reduces the likelihood of co-investment offers.</p>\u0000 </div>","PeriodicalId":47815,"journal":{"name":"European Financial Management","volume":"31 3","pages":"1246-1265"},"PeriodicalIF":2.1,"publicationDate":"2024-12-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144323707","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Entrepreneurial Firms and Bank Financing: Do Business Angels Play a Role?","authors":"Vincenzo Capizzi, Nicola Carta, Elisa Cavezzali, Ugo Rigoni","doi":"10.1111/eufm.12537","DOIUrl":"https://doi.org/10.1111/eufm.12537","url":null,"abstract":"<p>This paper investigates the contribution provided by business angels' (BAs) post-investment intervention to the interaction between young entrepreneurial firms and bank lending decisions within the entrepreneurial finance ecosystem. The analysis relies on a data set comprising 114 Italian BA-backed firms over the 2010–2018 period, alongside 498 matched firms. We find evidence that BAs' support makes it easier for entrepreneurial firms to raise follow-on bank financing. Additionally, we document the positive effects of both BAs' entrepreneurial experience and soft monitoring. These effects can be attributed to BAs' value-added contributions and their role in mitigating information asymmetries perceived by debt providers.</p>","PeriodicalId":47815,"journal":{"name":"European Financial Management","volume":"31 3","pages":"1217-1245"},"PeriodicalIF":2.1,"publicationDate":"2024-12-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/eufm.12537","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144323501","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Mohammed Saharti, Asif Saeed, Sajid M. Chaudhry, Muhammad Ali Nasir
{"title":"Lending Relationships of Firms for a Just Transition","authors":"Mohammed Saharti, Asif Saeed, Sajid M. Chaudhry, Muhammad Ali Nasir","doi":"10.1111/eufm.12535","DOIUrl":"https://doi.org/10.1111/eufm.12535","url":null,"abstract":"<div>\u0000 \u0000 <p>This paper examines lending dynamics for firms aiming for a “just transition”. Analyzing 37,426 firm-year observations from DealScan and Refinitiv's environmental, social and governance (ESG) transition data (2002–2021), we find that lenders offer lower interest rates to firms with prior relationships and strong ESG commitments, particularly environmental ones. While environmental factors receive favourable treatment, economic and governance transitions are less prioritized. Lenders tend to form more dispersed syndicates when supporting firms focused on ESG transitions, especially environmental ones. This research highlights the uneven focus within ESG transitions and emphasizes the underexamined area of governance, providing insights into lending relationships.</p>\u0000 </div>","PeriodicalId":47815,"journal":{"name":"European Financial Management","volume":"31 3","pages":"1195-1216"},"PeriodicalIF":2.1,"publicationDate":"2024-12-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144323491","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Financial Market Misconduct: A Bibliometric Perspective","authors":"Rosella Carè, Rabia Fatima","doi":"10.1111/eufm.12525","DOIUrl":"https://doi.org/10.1111/eufm.12525","url":null,"abstract":"<p>This article provides a bibliometric analysis of financial market misconduct (FMM) research. It maps the intellectual structure of FMM studies, visualizes the field's scientific literature, and uncovers its intellectual backbone, emergent ‘hot topics’, key journals, and influential authors. The study contributes to both academia and industry by elucidating the main components and evolutionary trends in FMM research. Additionally, it highlights future research directions by identifying potential underestimated risks and unexplored areas.</p>","PeriodicalId":47815,"journal":{"name":"European Financial Management","volume":"31 3","pages":"1042-1071"},"PeriodicalIF":2.1,"publicationDate":"2024-12-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/eufm.12525","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144323341","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Executive Equity-Based Compensation and Tournament Incentives","authors":"Meziane Lasfer, Xiaoke Ye","doi":"10.1111/eufm.12533","DOIUrl":"https://doi.org/10.1111/eufm.12533","url":null,"abstract":"<p>We find that the losers in CEO promotion tournaments sell their equity holdings profitably to mitigate the reductions in the promotion-based component of their contracts. They avoid selling before losing the contest to maximize their promotion probabilities. Those who are more likely to compete in the tournament and to face a greater forgone tournament prize trade more aggressively. Our results suggest that tournament losers consider their trading opportunities as outside options to compensate themselves ex-post. This strategy weakens the relationship between tournament incentives and firm performance and highlights new implications for tournament incentives models, compensation committees, and insider trading regulations.</p>","PeriodicalId":47815,"journal":{"name":"European Financial Management","volume":"31 3","pages":"1015-1041"},"PeriodicalIF":2.1,"publicationDate":"2024-11-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/eufm.12533","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144323613","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Voting in the Stock Market–Retail Investor Preferences During COVID-19","authors":"Anil Gautam, Grace Lepone PhD","doi":"10.1111/eufm.12526","DOIUrl":"https://doi.org/10.1111/eufm.12526","url":null,"abstract":"<div>\u0000 \u0000 <p>Using data from Robinhood, this study investigates retail investors' movement towards/from securities with different environmental, social and governance scores during the COVID-19 pandemic. Although the number of retail investors holding securities with low environmental scores declined, the number holding high-score securities remained steady. We also find heterogeneity in investors' reactions to different subcategory scores. The equal-weighted buy-and-hold portfolio of high-score securities did not outperform that of low-score securities in either volatility or return, suggesting neither financial return nor risk drove retail investors' preference for high environmental score securities. Thus, such ‘voting’ by investment choice is independent of pecuniary indicators.</p>\u0000 </div>","PeriodicalId":47815,"journal":{"name":"European Financial Management","volume":"31 3","pages":"995-1014"},"PeriodicalIF":2.1,"publicationDate":"2024-11-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144323612","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Theodosis L. Kallenos, Panayiotis Papakyriakou, Athanasios Sakkas, Zenon Taoushianis
{"title":"Tests of Global Flights to Safety With US Financial Firm Bankruptcy Announcements","authors":"Theodosis L. Kallenos, Panayiotis Papakyriakou, Athanasios Sakkas, Zenon Taoushianis","doi":"10.1111/eufm.12532","DOIUrl":"https://doi.org/10.1111/eufm.12532","url":null,"abstract":"<p>This paper investigates whether bankruptcy announcements by large US financial institutions can induce flights to safety, leading investors to seek safer investments. To test this relationship, we employ a short-horizon event study methodology and show that low-risk investments—such as the US dollar, sovereign bonds and gold—exhibit significant appreciation following such announcements. This result is more pronounced when the local country-level investor sentiment declines in the postannouncement period. We also analyze the transmission mechanism through which bankruptcy announcements cause flights to safety and empirically identify a global information contagion channel via negative shocks to the cash flows of stocks.</p>","PeriodicalId":47815,"journal":{"name":"European Financial Management","volume":"31 3","pages":"1170-1194"},"PeriodicalIF":2.1,"publicationDate":"2024-11-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/eufm.12532","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144323614","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}