The peer effects of PIPEs

This paper empirically confirms that there exist significant peer effects of PIPEs in Chinese listed companies with data during 2006 to 2019. We investigate their influencing mechanism and find the existence of significant peer effects of PIPEs in the companies with high industry information asymmetry and in those with fierce industry competition. Finally, we evaluate the peer effects of PIPEs, which significantly increase short-term firm value, but have no improvement in long run. Our paper not only enriches the relevant research on peer effects, but also provides a better practical understanding of PIPEs.

Automated summary

This study empirically confirms the significant peer effects of PIPEs in Chinese listed companies, and explores their influencing mechanism, which is primarily related to industry information asymmetry and intense competition. The study finds that the peer effects of PIPEs significantly increase short-term firm value, but have no improvement in the long run.