Does the Status Quo Affect the Private Equity Investment Decisions?
Despite the huge literature that has been carried to investigate the determinants of the private equity market, studies examining the extent of the SQB in the private equity investments’ decisions are missing. Our regressions are based on a data set that covers 24 OECD members’ countries from 2007 to 2015. We discovered the absence of a link between the SQB and the choice of private equity investments. However, the added value by activity, the private equity country attractiveness index, and the research & development expenditures have a significant impact on the choice of the investment sector.
