Private Equity and Financial Fragility during the Crisis / Shai Bernstein, Josh Lerner, Filippo Mezzanotti.

Format:

Book

Author/Creator:

Bernstein, Shai.

Contributor:

National Bureau of Economic Research.

Lerner, Josh.

Mezzanotti, Filippo.

Series:

Working Paper Series (National Bureau of Economic Research) no. w23626.

NBER working paper series no. w23626

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2017.

Summary:

Do private equity firms contribute to financial fragility during economic crises? We find that during the 2008 financial crisis, PE-backed companies increased investments relative to their peers, while also experiencing greater equity and debt inflows. The effects are stronger among financially constrained companies and those whose private equity investors had more resources at the onset of the crisis. PE-backed companies consequentially experienced higher asset growth and increased market share during the crisis.

Notes:

Print version record

July 2017.