Private Equity and Financial Fragility during the Crisis

Shai Bernstein, Josh Lerner and Filippo Mezzanotti

No 23626, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Do private equity firms contribute to financial fragility during economic crises? We find that during the 2008 financial crisis, PE-backed companies increased investments relative to their peers, while also experiencing greater equity and debt inflows. The effects are stronger among financially constrained companies and those whose private equity investors had more resources at the onset of the crisis. PE-backed companies consequentially experienced higher asset growth and increased market share during the crisis.

JEL-codes: E32 G24 (search for similar items in EconPapers)
Date: 2017-07
New Economics Papers: this item is included in nep-cfn, nep-fmk and nep-mac
Note: CF
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Citations: View citations in EconPapers (10)

Published as Shai Bernstein & Josh Lerner & Filippo Mezzanotti, 2019. "Private Equity and Financial Fragility during the Crisis," The Review of Financial Studies, vol 32(4), pages 1309-1373.

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Related works:
Journal Article: Private Equity and Financial Fragility during the Crisis (2019)
Working Paper: Private Equity and Financial Fragility during the Crisis (2018)
Working Paper: Private Equity and Financial Fragility During the Crisis (2017)
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