Private Equity and Financial Fragility during the Crisis

• 成果类型: Article
• 署名作者: Bernstein, Shai; Lerner, Josh; Mezzanotti, Filippo
• 署名单位: Stanford University; National Bureau of Economic Research; Harvard University; Northwestern University
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhy078
• 发表日期: 2019
• 页码: 1309
• 关键词: LEVERAGED BUYOUTS; FIRMS; PRODUCTIVITY; performance; EMPLOYMENT; uk

摘要

Does private equity (PE) contribute to financial fragility during economic crises? The proliferation of poorly structured transactions during booms may increase the vulnerability of the economy to downturns. During the 2008 crisis, PE-backed companies decreased investments less than did their peers and experienced greater equity and debt inflows, higher asset growth, and increased market share. These effects are especially strong among financially constrained companies and those whose PE investors had more resources at the crisis onset. In a survey, PE firms report being active investors during the crisis and spending more time working with their portfolio companies.