Cheng, Agnes; Fu, Jiajia; LI, Zhi; Xie, Jing - 2022
We investigate the role of financial reporting quality (FRQ) in private placements by examining whether FRQ affects the outcomes of private investment in public equity (PIPE) offerings. We find that PIPE issuers with higher FRQ enjoy a lower PIPE discount. We also find that firms with higher FRQ...