The Real Effects of Private Equity Buyouts: A Meta-Analysis
Verbouw, Jeroen
Verbouw, Jeroen
Publication Type
Conference Proceeding
Editor
Supervisor
Publication Year
2021-08
Journal
Book
Academy of Management Proceedings
Publication Volume
2021
Publication Issue
1
Publication Begin page
14309
Publication End page
14309
Publication Number of pages
Collections
Abstract
Using a meta-analytical approach, this study reviews the fragmented and contradictory empirical literature on the real effects of private equity (PE) on their portfolio companies, focusing on post-buyout operating performance and employment. Based upon 330 samples including 403,820 firms, we find a positive PE effect on operating performance in the medium-to-long term, but no effect on employment. Interestingly, performance gains are stronger in private-to-private buyouts compared to public-to-private buyouts. Countries with strong investor protection laws or with individualistic cultures facilitate larger operating performance gains, while employees are better off in countries with more stringent employee protection laws or with collectivistic cultures.
Research Projects
Organizational Units
Journal Issue
Keywords
Private Equity, Real Effects, Growth, Efficiency, Employment, Meta-Analysis