Arbeitspapier
Drivers of private equity activity across Europe: An East-West comparison
We investigate the key macroeconomic and institutional determinants of fundraising and investment activities and compare them across Europe, covering 13 Central and Eastern European (CEE) and 16 Western European (WE) countries. Five macroeconomic variables and nineteen institutional variables are selected. These variables are studied using panel data analysis with fixed effects and random effects models over an eleven-year observation period (2010-2020). Bayesian Model Averaging (BMA) is applied to select the key variables. Our results suggest that macroeconomic variables have no significant impact on fundraising and investment activity in either region. Investment activity is a significant driver of fundraising across Europe. Similarly, fundraising and divestment activity are significant drivers of investments across Europe. Institutional variables, however, affect fundraising and investment activity differently. While investment freedom has a significant effect on funds raised in the WE and CEE countries, government integrity and trade freedom are both significant determinants of investments in both European regions. In addition, the results demonstrate that, in contrast to the WE region, fundraising in the CEE region is not country specific.
- Language
-
Englisch
- Bibliographic citation
-
Series: IES Working Paper ; No. 14/2023
- Classification
-
Wirtschaft
Bayesian Analysis: General
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
Model Evaluation, Validation, and Selection
Investment; Capital; Intangible Capital; Capacity
International Financial Markets
Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies
Financial Institutions and Services: Government Policy and Regulation
Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
- Subject
-
Private equity (PE)
Fundraising
Investment
Central and Eastern Europe(CEE)
Western Europe (WE)
Bayesian Model Averaging (BMA)
- Event
-
Geistige Schöpfung
- (who)
-
Kočenda, Evžen
Rai, Shivendra
- Event
-
Veröffentlichung
- (who)
-
Charles University in Prague, Institute of Economic Studies (IES)
- (where)
-
Prague
- (when)
-
2023
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Kočenda, Evžen
- Rai, Shivendra
- Charles University in Prague, Institute of Economic Studies (IES)
Time of origin
- 2023