2016/05/03 by Shai Bernstein, Josh Lerner, Morten Sorensen +2 · 149 citations
Business, Management and Accounting · #Business #Corporate Finance and Governance #Economics #Equity (law) #Finance #Financial economics #Industrial organization #Private Equity and Venture Capital #Private equity #State Capitalism and Financial Governance
paper · open access · doi:10.1287/mnsc.2015.2404
published in Management Science 63(4), 1198-1213 (Institute for Operations Research and the Management Sciences)
openalex publication_date 2016/05/03 · openalex created_date 2025/10/10 · openalex updated_date 2026/08/04
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. This paper was accepted by Amit Seru, finance.