The Real Effects of Private Equity Buyouts
AbstractPrivate equity buyouts have become a common element in the industrial development process. I survey the literature on the real economic effect of buyouts: employment, wages, productivity, and long-run investments. Employment tend to marginally fall after a buyout in most countries studied, with the exception being France. There are clear evidence of productivity gains following a buyout, with part of these being shared with worker through higher wages. The evidence is mixed regarding effects on long-run investments.
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Bibliographic InfoPaper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 851.
Length: 25 pages
Date of creation: 09 Sep 2010
Date of revision:
Publication status: Published in The Oxford Handbook of Private Equity, Cumming, Douglas (eds.), 2012, chapter 10, Oxford University Press.
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More information through EDIRC
Employment; Innovation; Leveraged Buyouts; Long-run investments; Private equity buyouts; Productivity; Real effects;
Find related papers by JEL classification:
- G20 - Financial Economics - - Financial Institutions and Services - - - General
- G30 - Financial Economics - - Corporate Finance and Governance - - - General
- G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
- J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
- L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-09-18 (All new papers)
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