Private Equity and Industry Performance

Shai Bernstein, Josh Lerner, Morten Sørensen, Per Strömberg

Research output: Contribution to journalJournal articleResearchpeer-review

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.
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.
LanguageEnglish
JournalManagement Science
Volume63
Issue number4
Pages1198-1213
Number of pages16
ISSN0025-1909
DOIs
StatePublished - Mar 2017

Keywords

  • Private equity
  • Industry growth
  • Cross-country analysis
  • Production
  • Employment

Cite this

Bernstein, S., Lerner, J., Sørensen, M., & Strömberg, P. (2017). Private Equity and Industry Performance. Management Science, 63(4), 1198-1213. DOI: 10.1287/mnsc.2015.2404
Bernstein, Shai ; Lerner, Josh ; Sørensen, Morten ; Strömberg, Per. / Private Equity and Industry Performance. In: Management Science. 2017 ; Vol. 63, No. 4. pp. 1198-1213
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Bernstein, S, Lerner, J, Sørensen, M & Strömberg, P 2017, 'Private Equity and Industry Performance' Management Science, vol. 63, no. 4, pp. 1198-1213. DOI: 10.1287/mnsc.2015.2404

Private Equity and Industry Performance. / Bernstein, Shai; Lerner, Josh; Sørensen, Morten; Strömberg, Per.

In: Management Science, Vol. 63, No. 4, 03.2017, p. 1198-1213.

Research output: Contribution to journalJournal articleResearchpeer-review

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Bernstein S, Lerner J, Sørensen M, Strömberg P. Private Equity and Industry Performance. Management Science. 2017 Mar;63(4):1198-1213. Available from, DOI: 10.1287/mnsc.2015.2404