Economics at your fingertips  

Private equity, investment and financial constraints: firm-level evidence for France and the United Kingdom

Dirk Engel and Joel Stiebale ()

Small Business Economics, 2014, vol. 43, issue 1, 197-212

Abstract: This paper analyses the effects of private equity firms on the investments and financial constraints of their portfolio firms. We use dynamic panel data techniques to account for unobserved firm heterogeneity and endogeneity of private equity backed buyouts and expansion financing, and apply our framework to a large panel data set of firms in the UK and France. In both countries, we find that portfolio firms are characterized by higher investment levels and fewer financial constraints after expansion financing. In the UK, private equity backed buyouts outperform non-private equity backed firms in terms of both indicators. Copyright Springer Science+Business Media New York 2014

Keywords: Private equity; Investment; Financial constraints; GMM; G32; D92; G23; L26 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20) Track citations by RSS feed

Downloads: (external link) (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Private Equity, Investment and Financial Constraints – Firm-Level Evidence for France and the United Kingdom (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:

Ordering information: This journal article can be ordered from
http://www.springer. ... 29/journal/11187/PS2

DOI: 10.1007/s11187-013-9530-8

Access Statistics for this article

Small Business Economics is currently edited by Zoltan J. Acs and David B. Audretsch

More articles in Small Business Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

Page updated 2022-08-12
Handle: RePEc:kap:sbusec:v:43:y:2014:i:1:p:197-212