A global analysis of Private Investments in Public Equity

Dimitris Andriosopoulos, Styliani Panetsidou

Research output: Contribution to journalArticlepeer-review

7 Citations (Scopus)
207 Downloads (Pure)


Raising equity capital via Private Investments in Public Equity (PIPEs) has been rising in popularity, matching Seasoned Equity Offerings (SEOs). We use over 10,000 PIPEs in a global setting during 1995–2015 to assess how and through which channels institutional frameworks affect the issuers' performance. We document a significant decline in the market reaction, especially during 2004–2015 and find that firms issuing equity via PIPEs have significantly worse fundamentals. We also show that country governance matters as issuing firms operating in countries with better regulatory environments outperform others. Finally, we find that regulatory enforcement is a plausible underlying channel for the positive effect of the institutional frameworks on PIPEs performance.
Original languageEnglish
Article number101832
JournalJournal of Corporate Finance
Early online date5 Jan 2021
Publication statusPublished - Aug 2021

Bibliographical note

© 2020, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/

Copyright © and Moral Rights are retained by the author(s) and/ or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders.


  • Private Investment in Public Equity (PIPE)
  • Stock performance
  • Cross-country
  • Institutional frameworks
  • regulatory quality
  • Enforcement
  • Regulations
  • MiFID
  • Institutional frameworks, Regulatory quality

ASJC Scopus subject areas

  • Economics and Econometrics
  • Business and International Management
  • Finance
  • Strategy and Management


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