Information Asymmetries in Private Equity: Reporting Frequency, Endowments, and Governance
Sofia Johan () and
Additional contact information
Sofia Johan: Florida Atlantic University
Minjie Zhang: Odette School of Business - University of Windsor
Journal of Business Ethics, 2021, vol. 174, issue 1, No 12, 199-220
Abstract Using PitchBook’s private equity (PE) database of 4548 PE funds from 42 countries for the 2000 to 2012 period, we find that higher reporting frequency is associated with lower information asymmetry in performance reports from general partners (GPs) to limited partners. We also find that endowments are systematically associated with less reported unrealized returns as a percentage of total returns generated from GPs. Moreover, endowments receive more performance reports from their PE funds, implying more stringent governance. These findings persist after controlling for various institutional and GP characteristics and are robust to several adjustments for endogeneity concerns. This study also contributes to the finance, accounting, and business ethics literature on financial reporting quality.
Keywords: Private equity; Endowments; Financial reporting; Law and governance; Culture (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s10551-020-04558-6 Abstract (text/html)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kap:jbuset:v:174:y:2021:i:1:d:10.1007_s10551-020-04558-6
Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/10551/PS2
Access Statistics for this article
Journal of Business Ethics is currently edited by Michelle Greenwood and R. Edward Freeman
More articles in Journal of Business Ethics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().