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Exit routes, investor type, and the Covid-19 crisis: Insights from UK equity-funded companies

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  • Kacer, Marek
  • Wilson, Nicholas
  • Zouari, Sana

Abstract

Using a sample of UK equity funded companies, we examine differences in the exit strategy of companies funded by distinct investor types and operating in various technology intensive sectors during a period of crisis. Our results corroborate the hypothesis that investor involvement through oversight and imparting expertise augments the likelihood of favourable outcomes. This is particularly evident in high technology sectors. We observe increased exit activity amidst the crisis and notable disparities, contingent upon investor type, concerning chosen exit pathways.

Suggested Citation

  • Kacer, Marek & Wilson, Nicholas & Zouari, Sana, 2024. "Exit routes, investor type, and the Covid-19 crisis: Insights from UK equity-funded companies," Economics Letters, Elsevier, vol. 243(C).
    • Handle: RePEc:eee:ecolet:v:243:y:2024:i:c:s0165176524003884
    DOI: 10.1016/j.econlet.2024.111904
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    References listed on IDEAS

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    More about this item

    Keywords

    Equity funded companies; Investor type; Industry sector; Exit strategy; Covid-19 crisis;
    All these keywords.

    JEL classification:

    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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