This paper investigates how U.S. private firms communicate with equity investors around private capital raising. Using multiple research methods, including survey, interview, and archival analysis, I provide systematic evidence on private firms’ public and private disclosure practices. I find that despite engaging in a low level of public disclosures, private firms actively communicate with investors through the private communication channel at initial fundraising and subsequent periods. Such private communication also exhibits greater cross-sectional variation.
Focusing on provision of financial information, I provide evidence suggesting that private firm managers consider the relevance of information when making disclosure choices. Lastly, I investigate the relation be- tween firms’ private communication and public reporting preference and find a substitutive effect. The study informs current debate on regulating private market participants by examining existing disclosure landscape of private firms as an important first step.
| Identifer | oai:union.ndltd.org:columbia.edu/oai:academiccommons.columbia.edu:10.7916/b8p2-jy36 |
| Date | January 2023 |
| Creators | Kang, Yiran |
| Source Sets | Columbia University |
| Language | English |
| Detected Language | English |
| Type | Theses |
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