Chakraborty, Indraneel; Gantchev, Nickolay - In: Journal of Financial Economics 108 (2013) 1, pp. 213-230
We propose a new role for private investments in public equity (PIPEs) as a mechanism to reduce coordination frictions among existing equity holders. We establish a causal link between the coordination ability of incumbent shareholders and PIPE issuance. This result obtains even after...