Optimal investment of private equity

doi:10.1016/j.frl.2015.05.013

CORC > 上海财经大学 > 上海财经大学

	Optimal investment of private equity
	Liu, Yang 1; Yang, Jinqiang 2
刊名	FINANCE RESEARCH LETTERS
	2015-08
卷号	14 页码:76-86
关键词	Real option Private equity Illiquidity Compensation structure
ISSN号	1544-6123
DOI	10.1016/j.frl.2015.05.013
英文摘要	We investigate the implications of illiquidity and compensation structure on the investment decision of Private Equity (PE). We use a real option model to capture the optimal entry of PE investment for the risk-averse investors, and it shows that the illiquidity has ambiguous effects on the investment hurdle. Different from the economic implications of standard real option, our model shows that high illiquidity may accelerate or delay the investment decision. Management fees or carried interest will induce under-investment of PE. Moreover, our theoretical predictions are supported by the empirical evidence. (C) 2015 Elsevier Inc. All rights reserved.
WOS研究方向	Business & Economics
语种	英语
出版者	ACADEMIC PRESS INC ELSEVIER SCIENCE
WOS记录号	WOS:000360322200010
内容类型	期刊论文
源URL	[http://10.2.47.112/handle/2XS4QKH4/1502]
专题	上海财经大学
通讯作者	Liu, Yang
作者单位	1.Shanghai Univ Finance & Econ, Sch Finance, Shanghai, Peoples R China; 2.Shanghai Univ Finance & Econ, Sch Finance, Shanghai Key Lab Financial Informat Technol, Shanghai, Peoples R China
推荐引用方式 GB/T 7714	Liu, Yang,Yang, Jinqiang. Optimal investment of private equity[J]. FINANCE RESEARCH LETTERS,2015,14:76-86.
APA	Liu, Yang,&Yang, Jinqiang.(2015).Optimal investment of private equity.FINANCE RESEARCH LETTERS,14,76-86.
MLA	Liu, Yang,et al."Optimal investment of private equity".FINANCE RESEARCH LETTERS 14(2015):76-86.