Politically Connected Private Equity and Employment

• 成果类型: Article
• 署名作者: Faccio, Mara; Hsu, Hung-Chia
• 署名单位: Purdue University System; Purdue University; University of Arkansas System; University of Arkansas Fayetteville
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12483
• 发表日期: 2017
• 页码: 539-574
• 关键词: LEVERAGED BUYOUTS; VALUE CREATION; FIRMS; PRODUCTIVITY; determinants; management; CORRUPTION; INNOVATION

摘要

We investigate the employment consequences of private equity buyouts. We find evidence of higher job creation, on average, at the establishments operated by targets of politically connected private equity firms than at those operated by targets of nonconnected private equity firms. Consistent with an exchange of favors story, establishments operated by targets of politically connected private equity firms increase employment more during election years and in states with high levels of corruption. In additional analyses, we provide evidence of specific benefits experienced by target firms from their political connections. Our results are robust to tests designed to mitigate selection concerns.