The external financing costs of private equity ownership in Caribbean offshore economies
The external financing costs of private equity ownership in Caribbean offshore economies
Using a unique, hand-collected sample of 146 firms in the Caribbean region, this paper explores the impact of private equity (PE) ownership on the external financing costs of listed firms in Caribbean offshore economies. Our analysis is based on the ownership competency theory of Foss, Klein, Lien, Zellweger & Zenger (2021) and shows PE ownership increases these costs, as reflected in quoted bid-ask spreads. This relationship is negatively moderated by both the firm having a related party located in an offshore jurisdiction and the adoption of shareholder value governance. Our analysis sheds light on PE financing’s impact in stimulating entrepreneurial regeneration of small island economies and facilitating further broader investment, as well as maturity and exit in PE investment cycles.
Hearn, Bruce
45dccea3-9631-4e5e-914c-385896674dc2
9 November 2024
Hearn, Bruce
45dccea3-9631-4e5e-914c-385896674dc2
Hearn, Bruce
(2024)
The external financing costs of private equity ownership in Caribbean offshore economies.
International Corporate Governance Society annual meeting 2024: International Corporate Governance Society annual meeting 2024, Arizona State University, Pheonix, Arizona, USA, Pheonix, United States.
09 - 10 Nov 2024.
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Abstract
Using a unique, hand-collected sample of 146 firms in the Caribbean region, this paper explores the impact of private equity (PE) ownership on the external financing costs of listed firms in Caribbean offshore economies. Our analysis is based on the ownership competency theory of Foss, Klein, Lien, Zellweger & Zenger (2021) and shows PE ownership increases these costs, as reflected in quoted bid-ask spreads. This relationship is negatively moderated by both the firm having a related party located in an offshore jurisdiction and the adoption of shareholder value governance. Our analysis sheds light on PE financing’s impact in stimulating entrepreneurial regeneration of small island economies and facilitating further broader investment, as well as maturity and exit in PE investment cycles.
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Published date: 9 November 2024
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International Corporate Governance Society annual meeting 2024: International Corporate Governance Society annual meeting 2024, Arizona State University, Pheonix, Arizona, USA, Pheonix, United States, 2024-11-09 - 2024-11-10
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Local EPrints ID: 509345
URI: http://eprints.soton.ac.uk/id/eprint/509345
PURE UUID: 9aed51a5-46c4-4b4c-b82e-b756ec826f6d
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Date deposited: 19 Feb 2026 17:40
Last modified: 20 Feb 2026 02:56
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