Abstract
M.Com. (Finance)
The determinants of private equity investments (particularly venture capital investments as a sub-class of private equity) have been studied extensively across developed economies. However, these determinants have been studied on a limited basis among emerging markets. Hence, this minor dissertation primarily focuses on studying the determinants of private equity (inclusive of all its sub-classes) among the BRICS countries. Six explanatory factors, namely, market capitalization growth, the corporate tax rate, GDP growth, the real interest rate, the unemployment rate and the corruption perception index are studied. Private equity funds raised across the five countries are used as the proxy for private equity investments. These variables are studied using the panel data analysis approach predicated on the fixed effects model over an eight-year observation period (2008-2015).The study reveals that GDP growth is statistically significant and positively related to private equity investments. Furthermore, market capitalization is statistically significant and is found to be negatively related to the dependent variable; and the real interest rate is shown to be statistically significant and to have a positive relationship with private equity investments among the BRICS countries. Lastly, the corporate tax rate is found to be statistically significant and negatively related to the dependent variable.