Do Public Financial Statements Influence Private Equity and Venture Capital Financing?

• 成果类型: Article
• 署名作者: Baik, Brian K.; Berfeld, Natalie; Verdi, Rodrigo S.
• 署名单位: Harvard University; Boston College; Massachusetts Institute of Technology (MIT)
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/TAR-2022-0437
• 发表日期: 2025
• 页码: 1-20
• 关键词: earnings quality; FIRMS; disclosure

摘要

We study whether the availability of public audited financial statements influences the probability of private firms receiving private firm equity financing. Using a setting in the EU with plausibly exogenous variability in the extent to which private firms issue public financial reports, we find that private firms subject to public reporting requirements have a higher probability of obtaining private equity (PE) financing. In addition, we show that the increase in PE financing occurs in industries in which PE funds have prior experience. Last, we show that our findings also extend to other forms of private firm financing such as private firm acquisitions and venture capital. Our evidence highlights the importance of public financial statements in the decision-making of PE investors, an important and understudied segment of the private firm financing market.