This paper reassesses two conflicting hypotheses on the valuation impacts of private placements of equity (PPEs), the monitoring/certification hypothesis and the managerial entrenchment hypothesis, by focusing on the shareholder approval, active buyer, and premium pricing features of PPEs. We find that PPEs with these features have significant positive announcement returns and insignificant mean long-run returns, while the corresponding announcement and long-run returns for PPEs without such features are significantly negative. Firms with value-enhancing PPE features are better governed and use proceeds more efficiently. Thus, the heterogeneous nature of PPEs helps reconcile the puzzling return patterns and conflicting hypotheses regarding PPEs.

中文翻译：

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私募股权与公司价值：提升价值还是破坏价值？

本文通过关注 PPE 的股东认可、积极买家和溢价定价特征，重新评估了关于私募股权 (PPE) 估值影响的两个相互矛盾的假设，即监控/认证假设和管理层强化假设。我们发现具有这些特征的 PPE 具有显着的正公告收益和不显着的平均长期收益，而没有这些特征的 PPE 的相应公告和长期收益显着为负。具有提高价值的 PPE 功能的公司得到更好的治理，并更有效地使用收益。因此，PPE 的异质性有助于调和令人费解的回报模式和关于 PPE 的相互矛盾的假设。