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
15 October 2023
Hearn, Bruce
45dccea3-9631-4e5e-914c-385896674dc2
Hearn, Bruce
(2023)
The external financing costs of private equity ownership in Caribbean offshore economies.
Copenhagen Business School workshop on international business and corporate governance: CBS IB Workshop, Copenhagen Business School, Copenhagen, Denmark, Copenhagen, Denmark.
10 - 12 Oct 2023.
Record type:
Conference or Workshop Item
(Paper)
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: 15 October 2023
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Copenhagen Business School workshop on international business and corporate governance: CBS IB Workshop, Copenhagen Business School, Copenhagen, Denmark, Copenhagen, Denmark, 2023-10-10 - 2023-10-12
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Local EPrints ID: 509347
URI: http://eprints.soton.ac.uk/id/eprint/509347
PURE UUID: 06b6d659-e602-4c93-bffb-c0bdfe5a5765
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Date deposited: 19 Feb 2026 17:40
Last modified: 20 Feb 2026 02:56
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