Private equity buyouts, credit constraints, and firm exports

Paul Lavery, Jose Maria Serena Garralda, Marina-Eliza Spaliara and Serafeim Tsoukas

Working Papers from Business School - Economics, University of Glasgow

Abstract: We analyse the impact of private equity buyouts on firm exports, on a panel of UK non-financial firms over 2004-2017. Using difference-in-differences estimations, we show that private equity ownership increases the probability of exporting, the value of exports, and the export to sales ratio. We further show that the positive impact of private equity ownership on exports holds only after private-to-private buyouts, or acquisitions of small or young target firms. Our findings suggest that private equity investors mitigate the credit constraints faced by their portfolio companies, hence boosting their exports.

Keywords: Private equity buyouts; exporting; credit constraints; transactions (search for similar items in EconPapers)
JEL-codes: G32 G34 (search for similar items in EconPapers)
Date: 2021-05
New Economics Papers: this item is included in nep-cfn, nep-eur, nep-fmk, nep-int and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:gla:glaewp:2021_06

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