Work

Private Equity and Financial Fragility during the Crisis

Year: 2017

Type: report

Abstract: 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.

Source: National Bureau of Economic Research

DOI: 10.3386/w23626

Authors: Shai Bernstein, Josh Lerner, Filippo Mezzanotti

Institutions: Northwestern University, National Bureau of Economic Research, Harvard University, Stanford University

Language: English

Topic: Private Equity and Venture Capital

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

OpenAlex ID: W4236587023

Cites: 39

Cited by: 20

Related to: 10