When Vultures Bring Blessings: Employment Growth in Japanese Businesses under Private Equity Ownership

Georg Blind and Stefania Lottanti von Mandach

MPRA Paper from University Library of Munich, Germany

Abstract: We track the effect of private equity ownership on employment in a methodological setup uniting descriptive analysis with checks for selection effects and causality. Applying this approach to buyout investments in Japan, we find evidence that employment grows significantly under private equity ownership, a finding that is in stark contrast with earlier studies on Anglo-Saxon economies; that the increase is not attributable to selection effects; and that growth rates during the holding period are significantly higher than under the previous ownership. We seek an explanation in the institutional setup and explore the relevance of reputation in transactions with revealed identities.

Keywords: employment adjustments; private equity; buyout investments; Japan (search for similar items in EconPapers)
JEL-codes: G34 J23 J63 M51 (search for similar items in EconPapers)
Date: 2017-01-31
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https://mpra.ub.uni-muenchen.de/77764/1/MPRA_paper_77764.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/80811/1/MPRA_paper_80811.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/80816/9/MPRA_paper_80816.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/104155/1/MPRA_paper_104155.pdf revised version (application/pdf)

Related works:
Journal Article: Private Equity Buyouts in Japan: Effects on Employment Numbers (2021)
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