Narrative, Capital, and Valuation: Differential Response Mechanisms of Private Equity under Special Event Shocks

Aoran Mei

doi:10.54254/2754-1169/2026.NJ29959

Advances in Economics, Management and Political SciencesOpen access

Narrative, Capital, and Valuation: Differential Response Mechanisms of Private Equity under Special Event Shocks

Research Article

Open Access

Narrative, Capital, and Valuation: Differential Response Mechanisms of Private Equity under Special Event Shocks

Aoran Mei ^1*

¹ Shenzhen Middle School of Innovation and Inquiry

^*Corresponding author: Meiaoran184@outlook.com

Published on 26 November 2025

AEMPS Vol.242

ISSN (Print): 2754-1177

ISSN (Online): 2754-1169

ISBN (Print): 978-1-80590-555-4

ISBN (Online): 978-1-80590-556-1

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Abstract

Under the background of increase global economic volatility, the special event that cause by technological breakthrough and external shock has been become the key force to influence the valuation of capital market. However, the existing research is mainly located in public markets, and there is little involvement in the valuation influence mechanism of the private market. This essay mainly explores three core issues, that is how do special event affect private equity valuations, what is the path of special event impact and what is the difference between technological breakthrough and external shock in their influence effect. In order to investigate these three core issues, this study adopts two research methods that is Multi-case comparative analysis and events study methods, and select the technological breakthrough of 'ChatGPT’, 'COVID-19’ these two specific events as the major events, and use six companies that directly benefited from the incident were used as sample like OpenAI and BioNTech to analyze the valuations changes during the event window. The study reveals that the events can significantly boost valuation by changing industry expectations and capital flows, but the persistence of this impact is strongly moderated by a company’s technological barriers and the sustainability of its business model. This study not only fills the gaps in the valuation theory of the private market under the impact of special events, but also provides a framework for investors to use in identify opportunities and manage the risk.

Keywords:

Special Events, Private Valuation, Artificial Intelligence, COVID-19

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