Private Equity Fund Reporting Quality, External Monitors, and Third-Party Service Providers

• 成果类型: Article
• 署名作者: Easton, Peter D.; Larocque, Stephannie A.; Mason, Paul; Utke, Steven
• 署名单位: University of Notre Dame; Baylor University; University of Connecticut
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/TAR-2023-0291
• 发表日期: 2023
• 页码: 187-219
• 关键词: CORPORATE GOVERNANCE; OWNERSHIP; performance; valuation; INFORMATION; management; Auditors; returns; IMPACT; pay

摘要

We describe variation in the reporting quality (i.e., accuracy and bias of reported net asset values (NAVs)) of private equity (PE) funds across types of external monitors (investors and auditors) and third-party service providers (valuation specialists, marketers, and administrators). In contrast to public markets, we find only limited evidence that reporting quality varies with the composition and types of investors in PE funds. We observe, however, that reporting quality varies with auditor involvement and the use of third-party service providers; these associations often differ across buyout (BO) and venture capital (VC) funds and from those observed in public markets. Our evidence is important to investors and regulators, especially now that PE supersedes public markets as the main vehicle to raise capital and as regulators increase their focus on private markets.