Barbarians at the Store? Private Equity, Products, and Consumers

• 成果类型: Article
• 署名作者: Fracassi, Cesare; Previtero, Alessandro; Sheen, Albert
• 署名单位: University of Texas System; University of Texas Austin; Indiana University System; Indiana University Bloomington; IU Kelley School of Business; National Bureau of Economic Research; U.S. Securities & Exchange Commission (SEC)
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.13134
• 发表日期: 2022
• 页码: 1439-1488
• 关键词: Financial constraints; cash flow; buyouts; FIRMS; COMPETITION; variety; gains; COSTS

摘要

We investigate the effects of private equity firms on product markets using price and sales data for an extensive number of consumer products. Following a private equity deal, target firms increase retail sales of their products 50% more than matched control firms. Price increases-roughly 1% on existing products-do not drive this growth; the launch of new products and geographic expansion do. Competitors reduce their product offerings and marginally raise prices. Cross-sectional results on target firms, private equity firms, the economic environment, and product categories suggest that private equity generates growth by easing financial constraints and providing managerial expertise.