Private equity, HRM and employment
Bacon, Nick Wright, Mike Ball, Rod Meuleman, Miguel
Bacon, Nick
Wright, Mike
Ball, Rod
Meuleman, Miguel
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Publication Type
Journal article with impact factor
Editor
Supervisor
Publication Year
2013
Journal
Academy of Management Perspectives
Book
Publication Volume
27
Publication Issue
1 (February)
Publication Begin page
7
Publication End page
21
Publication Number of pages
Collections
Abstract
We analyze the employment, wages, human resource management, and industrial relations impact of private equity, drawing on empirical evidence from various countries and institutional contexts. We identify different types of private equity-backed buyouts and highlight the impact of creating value through long- and short-term ownership and strategies emphasizing increased efficiency or growth. We show that the effects may vary between buyout types and that it is inappropriate to regard most private equity leveraged buyouts as a zero-sum game with value transferred to shareholders at workers' expense. We conclude that regulating private equity in favor of the organizational model of managerial capitalism is unlikely to necessarily further workers' interests.
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Keywords
Entrepreneurship, Private Equity, Employment, Personnel Management, Zero Sum Games, Stockholders, Leveraged Buyouts, Alternative Investments, Industrial Relations, Cost Effectiveness, Cost Control, Agency Theory, Corporate Reorganizations