Private Equity Buyouts and Workplace Safety

• 成果类型: Article
• 署名作者: Cohn, Jonathan; Nestoriak, Nicole; Wardlaw, Malcolm
• 署名单位: University of Texas System; University of Texas Austin; University System of Georgia; University of Georgia
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhab001
• 发表日期: 2021
• 页码: 4832
• 关键词: LEVERAGED BUYOUTS; operating performance; CAMPEAUS ACQUISITION; PRODUCTIVITY; CONSEQUENCES; jobs

摘要

This paper presents evidence of a large, persistent decline in establishment-level workplace injury rates after private equity (PE) buyouts of publicly traded U.S. firms. We find that firms experience fewer OSHA safety violations after buyouts and that a larger decline in injury rates is associated with an increased probability of exit via IPO. Employment reductions after buyouts are concentrated in relatively low-injury-risk establishments. Overall, our results suggest that buyouts improve workplace safety and that PE acquirers benefit from this improvement. We explore possible causes of these changes through interviews with executives of companies acquired in buyouts and through cross-sectional analysis.