Private Equity and Industry Performance

Shai Bernstein (), Josh Lerner, Morten Sørensen and Per Strömberg
Additional contact information
Shai Bernstein: Harvard Business School
Morten Sørensen: Columbia Business School
Per Strömberg: Stockholm School of Economics - Department of Finance

No 10-045, Harvard Business School Working Papers from Harvard Business School

Abstract: The growth of the private equity industry has spurred concerns about its potential impact on the economy more generally. This analysis looks across nations and industries to assess the impact of private equity on industry performance. Industries where PE funds have invested in the past five years have grown more quickly in terms of productivity and employment. There are few significant differences between industries with limited and high private equity activity. It is hard to find support for claims that economic activity in industries with private equity backing is more exposed to aggregate shocks. The results using lagged private equity investments suggest that the results are not driven by reverse causality. These patterns are not driven solely by common law nations such as the United Kingdom and United States, but also hold in Continental Europe.

Pages: 36 pages
Date: 2010-12
New Economics Papers: this item is included in nep-eec and nep-eff
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Citations: View citations in EconPapers (17)

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http://www.hbs.edu/research/pdf/10-045.pdf (application/pdf)

Related works:
Journal Article: Private Equity and Industry Performance (2017)
Working Paper: Private Equity and Industry Performance (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:hbs:wpaper:10-045

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