20.04.2017 • 21/2017
IWH Policy Talk: „Gewissenlose Kapitalisten oder Motor der Zukunft? Private Equity in Europa“
Das Leibniz-Institut für Wirtschaftsforschung Halle (IWH) lädt am Montag, dem 24. April 2017 um 17:00 Uhr zu seinem zweiten IWH Policy Talk zum Thema „Gewissenlose Kapitalisten oder Motor der Zukunft? Private Equity in Europa“ mit Peter Cornelius von AlpInvest in den Konferenzsaal des Instituts ein.
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Private Equity and Industry Performance
Shai B. Bernstein, Josh Lerner, Morten Sorensen, Per Strömberg
Management Science,
No. 4,
2017
Abstract
The growth of the private equity industry has spurred concerns about its impact on the economy. This analysis looks across nations and industries to assess the impact of private equity on industry performance. We find that industries where private equity funds invest grow more quickly in terms of total production and employment and appear less exposed to aggregate shocks. Our robustness tests provide some evidence that is consistent with our effects being driven by our preferred channel.
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The Operational Consequences of Private Equity Buyouts: Evidence From the Restaurant Industry
Shai B. Bernstein, Albert Sheen
Review of Financial Studies,
No. 9,
2016
Abstract
How do private equity firms affect their portfolio companies? We document operational changes in restaurant chain buyouts using comprehensive health inspection records. Store-level operational practices improve after private equity buyout, as restaurants become cleaner, safer, and better maintained. Supporting a causal interpretation, this effect is stronger in chain-owned stores than in franchised locations—“twin” restaurants over which private equity owners have limited control. These changes are particularly apparent when private equity partners have prior industry experience. The results suggest that by bringing in industry expertise, private equity firms improve firm operations.
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The Effect of Personal Bankruptcy Exemptions on Investment in Home Equity
S. Corradin, Reint E. Gropp, H. Huizinga, Luc Laeven
Journal of Financial Intermediation,
January
2016
Abstract
Homestead exemptions to personal bankruptcy allow households to retain their home equity up to a limit determined at the state level. Households that may experience bankruptcy thus have an incentive to bias their portfolios towards home equity. Using US household data for the period 1996 to 2006, we find that household demand for real estate is relatively high if the marginal investment in home equity is covered by the exemption. The home equity bias is more pronounced for younger and less healthy households that face more financial uncertainty and therefore have a higher ex ante probability of bankruptcy. These results suggest that homestead exemptions have an important bearing on the portfolio allocation of US households and the extent to which they insure against bad shocks.
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Private Equity, Jobs, and Productivity
Steven J. Davis, John Haltiwanger, Kyle Handley, Ron S. Jarmin, Josh Lerner, Javier Miranda
American Economic Review,
No. 12,
2014
Abstract
Private equity critics claim that leveraged buyouts bring huge job losses and few gains in operating performance. To evaluate these claims, we construct and analyze a new dataset that covers US buyouts from 1980 to 2005. We track 3,200 target firms and their 150,000 establishments before and after acquisition, comparing to controls defined by industry, size, age, and prior growth. Buyouts lead to modest net job losses but large increases in gross job creation and destruction. Buyouts also bring TFP gains at target firms, mainly through accelerated exit of less productive establishments and greater entry of highly productive ones.
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Who Invests in Home Equity to Exempt Wealth from Bankruptcy?
S. Corradin, Reint E. Gropp, H. Huizinga, Luc Laeven
Abstract
Homestead exemptions to personal bankruptcy allow households to retain their home equity up to a limit determined at the state level. Households that may experience bankruptcy thus have an incentive to bias their portfolios towards home equity. Using US household data for the period 1996 to 2006, we find that household demand for real estate is relatively high if the marginal investment in home equity is covered by the exemption. The home equity bias is more pronounced for younger households that face more financial uncertainty and therefore have a higher ex ante probability of bankruptcy.
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How an IPO Helps in M&A
Ugur Celikyurt, Merih Sevilir, Anil Shivdasani
Journal of Applied Corporate Finance,
No. 2,
2010
Abstract
An initial public offering (IPO) can often provide a powerful stimulus to private companies seeking to pursue an acquisition-driven growth strategy. Based on a comprehensive analysis of U.S. IPOs, the authors show that newly public companies are prolific acquirers. Over 30% of companies conducting an IPO make at least one acquisition in their IPO year, and the typical IPO firm makes about four acquisitions during its first five years as a public company. IPOs facilitate M&A not only by providing infusions of capital but also by creating ongoing access to equity and debt markets for cash-financed deals. In addition, IPOs create an acquisition currency that can prove valuable in stock-financed deals when the shares are attractively priced. The authors also argue that IPOs improve the ability of companies to conduct M&A by resolving some of the valuation uncertainty facing privately held companies.
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Die volkswirtschaftliche Bedeutung von Private Equity
Ulrich Blum
Private Equity. Beurteilungs- und Bewertungsverfahren von Kapitalbeteiligungsgesellschaften,
2008
Abstract
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Public Housing and the Fear of Private Equity – Assessing Social Impacts
Dominik Weiß
Wirtschaft im Wandel,
No. 12,
2008
Abstract
Der Beitrag untersucht die Auswirkungen der aus sozialen Gründen stark kritisierten Verkäufe kommunaler Wohnungen an private Investoren. DieAuswertung des Sozio-oekonomischen Panels von 1999 bis 2006 lässt keine gravierenden Auswirkungen der Privatisierung kommunaler Mietwohnungen auf die betroffenen Haushalte erkennen. Sie liefert insofern keine empirischen Argumente für die öffentlich geführte Kritik am Verkauf kommunaler Wohnungen. Die wesentlichen Ergebnisse aus dieser Stichprobe deuten auf moderate Mietsteigerungen und überdurchschnittliche Investitionstätigkeit nach der Privatisierung hin. Allerdings ist die Gesamtkostenbelastung für die Wohnung nach subjektiver Einschätzung der Haushalte bei den privatisierten Wohnungen angestiegen. Ein möglicher Grund für diese Entwicklung könnte die geringere Mobilität der Bewohner von kommunalen Wohnungen sein.
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