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The Macroeconomic and Environmental Determinants of Private Equity in Emerging Asia Market: The Application of Extreme Bounds Analysis

Received: 5 September 2014     Accepted: 15 September 2014     Published: 30 September 2014
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Abstract

There is a great debate on the significance of the stable economic and well structure legal system on the commercialization, innovation and employment in modern economies. Private equity activities play a significant role in these three aspects. The purpose of this work is to investigate the macroeconomic and environmental determinants of private equity investment in nine major Asian countries. The estimations are based on a data set running from 2004 to 2013. Applying robust estimation techniques Extreme Bounds Analysis, this work identifies growth in domestic product growth, corporation tax rate, disclosure index and investors’ protection index as 'robust' set of determinants of private equity. Also, inflation, stock market value, property right index, legal costs, lending rate and time in days to start business as likely robust. The result suggests the need to enhance business confidence in the country not only through robust monetary and fiscal policy but also legal system.

Published in Journal of Investment and Management (Volume 3, Issue 3)
DOI 10.11648/j.jim.20140303.12
Page(s) 51-60
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2014. Published by Science Publishing Group

Keywords

Emerging Markets, Private Equity, Venture Capital

References
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Cite This Article
  • APA Style

    Isaiah Oino. (2014). The Macroeconomic and Environmental Determinants of Private Equity in Emerging Asia Market: The Application of Extreme Bounds Analysis. Journal of Investment and Management, 3(3), 51-60. https://doi.org/10.11648/j.jim.20140303.12

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    ACS Style

    Isaiah Oino. The Macroeconomic and Environmental Determinants of Private Equity in Emerging Asia Market: The Application of Extreme Bounds Analysis. J. Invest. Manag. 2014, 3(3), 51-60. doi: 10.11648/j.jim.20140303.12

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    AMA Style

    Isaiah Oino. The Macroeconomic and Environmental Determinants of Private Equity in Emerging Asia Market: The Application of Extreme Bounds Analysis. J Invest Manag. 2014;3(3):51-60. doi: 10.11648/j.jim.20140303.12

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  • @article{10.11648/j.jim.20140303.12,
      author = {Isaiah Oino},
      title = {The Macroeconomic and Environmental Determinants of Private Equity in Emerging Asia Market: The Application of Extreme Bounds Analysis},
      journal = {Journal of Investment and Management},
      volume = {3},
      number = {3},
      pages = {51-60},
      doi = {10.11648/j.jim.20140303.12},
      url = {https://doi.org/10.11648/j.jim.20140303.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20140303.12},
      abstract = {There is a great debate on the significance of the stable economic and well structure legal system on the commercialization, innovation and employment in modern economies. Private equity activities play a significant role in these three aspects. The purpose of this work is to investigate the macroeconomic and environmental determinants of private equity investment in nine major Asian countries. The estimations are based on a data set running from 2004 to 2013. Applying robust estimation techniques Extreme Bounds Analysis, this work identifies growth in domestic product growth, corporation tax rate, disclosure index and investors’ protection index as 'robust' set of determinants of private equity. Also, inflation, stock market value, property right index, legal costs, lending rate and time in days to start business as likely robust. The result suggests the need to enhance business confidence in the country not only through robust monetary and fiscal policy but also legal system.},
     year = {2014}
    }
    

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    AB  - There is a great debate on the significance of the stable economic and well structure legal system on the commercialization, innovation and employment in modern economies. Private equity activities play a significant role in these three aspects. The purpose of this work is to investigate the macroeconomic and environmental determinants of private equity investment in nine major Asian countries. The estimations are based on a data set running from 2004 to 2013. Applying robust estimation techniques Extreme Bounds Analysis, this work identifies growth in domestic product growth, corporation tax rate, disclosure index and investors’ protection index as 'robust' set of determinants of private equity. Also, inflation, stock market value, property right index, legal costs, lending rate and time in days to start business as likely robust. The result suggests the need to enhance business confidence in the country not only through robust monetary and fiscal policy but also legal system.
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Author Information
  • Department of Accounting & Finance, Greenwich School Of Management, London, UK

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