The macroeconomic and environmental determinants of private equity in emerging Asia market: The application of extreme bounds analysis

Research output: Contribution to journalArticle

Abstract

There is a great debate on the significance of the stable economic and well structure legal system on the commercialization, innovation and employment in modern economies. Private equity activities play a significant role in these three aspects. The purpose of this work is to investigate the macroeconomic and environmental determinants of private equity investment in nine major Asian countries. The estimations are based on a data set running from 2004 to 2013. Applying robust
estimation techniques Extreme Bounds Analysis, this work identifies growth in domestic product growth, corporation tax rate, disclosure index and investors’ protection index as 'robust' set of determinants of private equity. Also, inflation, stock market value, property right index, legal costs, lending rate and time in days to start business as likely robust. The result suggests the need to enhance business confidence in the country not only through robust monetary and fiscal policy but also legal system.
Original languageEnglish
Pages (from-to)51-60
Number of pages10
JournalJournal of Investment and Management
Volume3
Issue number3
DOIs
Publication statusPublished - 30 Sep 2014

Fingerprint

Emerging Asia
Private equity
Extreme bounds analysis
Macroeconomics
Legal system
Confidence
Monetary and fiscal policy
Tax rate
Inflation
Property rights
Asian countries
Innovation
Investor protection
Market value
Corporation tax
Costs
Disclosure index
Economics
Commercialization
Stock market

Keywords

  • Emerging markets
  • Private equity
  • Venture capital

Cite this

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title = "The macroeconomic and environmental determinants of private equity in emerging Asia market: The application of extreme bounds analysis",
abstract = "There is a great debate on the significance of the stable economic and well structure legal system on the commercialization, innovation and employment in modern economies. Private equity activities play a significant role in these three aspects. The purpose of this work is to investigate the macroeconomic and environmental determinants of private equity investment in nine major Asian countries. The estimations are based on a data set running from 2004 to 2013. Applying robustestimation techniques Extreme Bounds Analysis, this work identifies growth in domestic product growth, corporation tax rate, disclosure index and investors’ protection index as 'robust' set of determinants of private equity. Also, inflation, stock market value, property right index, legal costs, lending rate and time in days to start business as likely robust. The result suggests the need to enhance business confidence in the country not only through robust monetary and fiscal policy but also legal system.",
keywords = "Emerging markets, Private equity, Venture capital",
author = "Isaiah Oino",
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AB - There is a great debate on the significance of the stable economic and well structure legal system on the commercialization, innovation and employment in modern economies. Private equity activities play a significant role in these three aspects. The purpose of this work is to investigate the macroeconomic and environmental determinants of private equity investment in nine major Asian countries. The estimations are based on a data set running from 2004 to 2013. Applying robustestimation techniques Extreme Bounds Analysis, this work identifies growth in domestic product growth, corporation tax rate, disclosure index and investors’ protection index as 'robust' set of determinants of private equity. Also, inflation, stock market value, property right index, legal costs, lending rate and time in days to start business as likely robust. The result suggests the need to enhance business confidence in the country not only through robust monetary and fiscal policy but also legal system.

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