EconPapers    
Economics at your fingertips  
 

Do Private Equity Owned Firms Have Better Management Practices?

Nicholas Bloom (), Raffaella Sadun () and John van Reenen ()

American Economic Review, 2015, vol. 105, issue 5, 442-46

Abstract: Using an innovative survey measure of management practices on over 15,000 firms, we find private equity firms are better managed than government, family, and privately owned firms, and have similar management to publicly listed firms. This is true both in developed and developing countries. Looking at management practices in detail we find that private equity owned firms have strong people management practices (hiring, firing, pay, and promotions), but even stronger monitoring management practices (lean manufacturing, continuous improvement, and monitoring). Plant managers working in private equity owned firms also report greater autonomy from headquarters over sales, marketing, and new product introduction.

JEL-codes: G24 G32 G34 M10 (search for similar items in EconPapers)
Date: 2015
Note: DOI: 10.1257/aer.p20151000
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://www.aeaweb.org/articles.php?doi=10.1257/aer.p20151000 (application/pdf)
https://www.aeaweb.org/aer/data/10505/P2015_1000_data.zip (application/zip)
https://www.aeaweb.org/aer/ds/10505/P2015_1000_ds.zip (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
Working Paper: Do Private Equity Owned Firms Have Better Management Practices? (2009) Downloads
Working Paper: Do private equity owned firms have better management practices? (2009) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aea:aecrev:v:105:y:2015:i:5:p:442-46

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/subscribe.html

Access Statistics for this article

American Economic Review is currently edited by Pinelopi Koujianou Goldberg

More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Series data maintained by Jane Voros ().

 
Page updated 2017-10-06
Handle: RePEc:aea:aecrev:v:105:y:2015:i:5:p:442-46