Manager Mobility and Private Equity Syndications from the Perspective of Coupling Networks: Evidence from China’s Private Equity Industry
<p>This study explores whether manager mobility can influence syndications between private equity (PE) firms by constructing coupling network models. Using data from China’s private equity market from 1993 to 2017, we found that driving forces, resistant forces, and network structure play sign...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Tsinghua University Press
2023-06-01
|
| Series: | Journal of Social Computing |
| Subjects: | |
| Online Access: | https://www.sciopen.com/article/10.23919/JSC.2023.0012 |
| _version_ | 1797662529410826240 |
|---|---|
| author | Jie Ren Xibao Li Likun Cao |
| author_facet | Jie Ren Xibao Li Likun Cao |
| author_sort | Jie Ren |
| collection | DOAJ |
| description | <p>This study explores whether manager mobility can influence syndications between private equity (PE) firms by constructing coupling network models. Using data from China’s private equity market from 1993 to 2017, we found that driving forces, resistant forces, and network structure play significant roles in determining resource flows between PE firms. Specifically, driving forces indicate that managers moving from domestic and foreign PE firms to state-owned PE firms are more likely to induce syndications. Furthermore, if the manager is promoted when changing jobs, mobility is likely to enhance the flow of resources. Resistant forces indicate that increased geographical distance reduces syndications. As for the influence of structure, if managers leave PE firms with higher status, they are more likely to induce syndications. This study contributes to the coupling network literature by providing a clarified three-factor framework. By exploring the characteristic of managers in state-owned private equity firms, we specified the syndication theory in China. This study can help private equity firms hire valuable managers and expand syndication networks in practice.</p> |
| first_indexed | 2024-03-11T19:01:33Z |
| format | Article |
| id | doaj.art-943b4bdf225449e69a025cc1aefccc48 |
| institution | Directory Open Access Journal |
| issn | 2688-5255 |
| language | English |
| last_indexed | 2024-03-11T19:01:33Z |
| publishDate | 2023-06-01 |
| publisher | Tsinghua University Press |
| record_format | Article |
| series | Journal of Social Computing |
| spelling | doaj.art-943b4bdf225449e69a025cc1aefccc482023-10-10T12:24:09ZengTsinghua University PressJournal of Social Computing2688-52552023-06-014215016710.23919/JSC.2023.0012Manager Mobility and Private Equity Syndications from the Perspective of Coupling Networks: Evidence from China’s Private Equity IndustryJie Ren0Xibao Li1Likun Cao2School of Economics and Management, University of Science and Technology Beijing, Beijing 100083, ChinaSchool of Economics and Management, Tsinghua University, Beijing 100084, ChinaDivision of Social Sciences, University of Chicago, Chicago, IL 60637, USA<p>This study explores whether manager mobility can influence syndications between private equity (PE) firms by constructing coupling network models. Using data from China’s private equity market from 1993 to 2017, we found that driving forces, resistant forces, and network structure play significant roles in determining resource flows between PE firms. Specifically, driving forces indicate that managers moving from domestic and foreign PE firms to state-owned PE firms are more likely to induce syndications. Furthermore, if the manager is promoted when changing jobs, mobility is likely to enhance the flow of resources. Resistant forces indicate that increased geographical distance reduces syndications. As for the influence of structure, if managers leave PE firms with higher status, they are more likely to induce syndications. This study contributes to the coupling network literature by providing a clarified three-factor framework. By exploring the characteristic of managers in state-owned private equity firms, we specified the syndication theory in China. This study can help private equity firms hire valuable managers and expand syndication networks in practice.</p>https://www.sciopen.com/article/10.23919/JSC.2023.0012manager mobilitysyndicationcoupling networksdriving forceresistance forcenetwork structure |
| spellingShingle | Jie Ren Xibao Li Likun Cao Manager Mobility and Private Equity Syndications from the Perspective of Coupling Networks: Evidence from China’s Private Equity Industry Journal of Social Computing manager mobility syndication coupling networks driving force resistance force network structure |
| title | Manager Mobility and Private Equity Syndications from the Perspective of Coupling Networks: Evidence from China’s Private Equity Industry |
| title_full | Manager Mobility and Private Equity Syndications from the Perspective of Coupling Networks: Evidence from China’s Private Equity Industry |
| title_fullStr | Manager Mobility and Private Equity Syndications from the Perspective of Coupling Networks: Evidence from China’s Private Equity Industry |
| title_full_unstemmed | Manager Mobility and Private Equity Syndications from the Perspective of Coupling Networks: Evidence from China’s Private Equity Industry |
| title_short | Manager Mobility and Private Equity Syndications from the Perspective of Coupling Networks: Evidence from China’s Private Equity Industry |
| title_sort | manager mobility and private equity syndications from the perspective of coupling networks evidence from china s private equity industry |
| topic | manager mobility syndication coupling networks driving force resistance force network structure |
| url | https://www.sciopen.com/article/10.23919/JSC.2023.0012 |
| work_keys_str_mv | AT jieren managermobilityandprivateequitysyndicationsfromtheperspectiveofcouplingnetworksevidencefromchinasprivateequityindustry AT xibaoli managermobilityandprivateequitysyndicationsfromtheperspectiveofcouplingnetworksevidencefromchinasprivateequityindustry AT likuncao managermobilityandprivateequitysyndicationsfromtheperspectiveofcouplingnetworksevidencefromchinasprivateequityindustry |