Private equity and human capital risk

• 成果类型: Article
• 署名作者: Antoni, Manfred; Maug, Ernst; Obernberger, Stefan
• 署名单位: University of Mannheim; Erasmus University Rotterdam - Excl Erasmus MC; Erasmus University Rotterdam
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2019.04.010
• 发表日期: 2019
• 页码: 634-657
• 关键词: private equity; Restructuring; Human capital risk; buyouts; wages

摘要

We study the human capital effects of private equity buyouts in Germany. We conduct matched-sample difference-in-differences estimations at the establishment and at the individual employee level with more than 152 thousand buyout employees and a carefully matched control group. Buyouts are followed by a reduction in overall employment and an increase in employee turnover. Employees of buyout targets experience earnings declines equivalent to 2.8% of median earnings in the fifth year after the buyout. Managers and older employees fare far worse after buyouts compared with the average target employee, even though they are not more likely to lose their jobs at the target compared with other employees. We argue that the employees most negatively affected after buyouts are those who are less likely to find new employment, not those who are most likely to lose their jobs. Evidence exists of a reduction in administrative staff and more hiring for jobs that require IT skills. (C) 2019 The Authors. Published by Elsevier B.V.