Abstract
The determinants of private equity investments (particularly venture capital
investments) have been studied extensively across developed economies. This is
however not the case among emerging markets. Hence, this study primarily focuses
on the determinants of private equity (inclusive of all sub-classes) among the BRICS
countries. Six macroeconomic and market related explanatory variables, including the
corruption perception index are studied. Private equity funds raised across BRICS are
used as the proxy for private equity investments. These variables are studied using
panel data analysis predicated on the fixed effects model over an eight-year
observation period. The study reveals that GDP growth and real interest rate are both
statistically significant and positively related to private equity investments across the
BRICS countries. Furthermore, market capitalization growth and corporate tax rates
are statistically significant and are both found to be negatively related to the dependent
variable.