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The peer effects of PIPEs

Author

Listed:
  • Ye, Zhiqiang
  • Zhang, Shunming
  • Zheng, Jiefei

Abstract

This paper empirically confirms that there exist significant peer effects of PIPEs in Chinese listed companies with data during 2006 to 2019. We investigate their influencing mechanism and find the existence of significant peer effects of PIPEs in the companies with high industry information asymmetry and in those with fierce industry competition. Finally, we evaluate the peer effects of PIPEs, which significantly increase short-term firm value, but have no improvement in long run. Our paper not only enriches the relevant research on peer effects, but also provides a better practical understanding of PIPEs.

Suggested Citation

  • Ye, Zhiqiang & Zhang, Shunming & Zheng, Jiefei, 2023. "The peer effects of PIPEs," International Review of Economics & Finance, Elsevier, vol. 83(C), pages 156-172.
    • Handle: RePEc:eee:reveco:v:83:y:2023:i:c:p:156-172
    DOI: 10.1016/j.iref.2022.08.021
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    1. Zhao, Tianjiao & Wang, Hanyu, 2024. "The industry peer effect of enterprise ESG performance: the moderating effect of customer concentration," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 1499-1525.

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    More about this item

    Keywords

    Peer effects; PIPEs; Industrial information asymmetry; The information-based theory; The rivalry-based theory;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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