Does Private Equity Stir Up European Industries?

36 Pages Posted: 3 Jul 2015

See all articles by Reinder Lubbers

Reinder Lubbers

University of Groningen - Faculty of Economics and Business

J. Henk von Eije

University of Groningen - Faculty of Economics and Business

Wim Westerman

University of Groningen - Faculty of Economics and Business

Date Written: July 2, 2015

Abstract

Private equity is subject to public debate regarding its impact on economies. While several papers have documented the effects of private equity on a firm level, the effects of private equity on an industry level is hardly addressed. This paper analyzes the influence of private equity on industry performance across twelve European countries. We find that the relative investment level of private equity positively influences the industries’ productivity, operating income, number of employees and average wage level. Causality tests show that the relative level of private equity investments causes the changes in the industries and not vice-versa.

Keywords: Private equity, industries, Europe, performance

JEL Classification: G34, L25

Suggested Citation

Lubbers, Reinder and von Eije, J. Henk and Westerman, Wim, Does Private Equity Stir Up European Industries? (July 2, 2015). Available at SSRN: https://ssrn.com/abstract=2626078 or http://dx.doi.org/10.2139/ssrn.2626078

Reinder Lubbers

University of Groningen - Faculty of Economics and Business ( email )

Postbus 72
9700 AB Groningen
Netherlands

J. Henk Von Eije (Contact Author)

University of Groningen - Faculty of Economics and Business ( email )

Postbus 72
9700 AB Groningen
Netherlands

Wim Westerman

University of Groningen - Faculty of Economics and Business ( email )

Postbus 800
9700 AV Groningen
Netherlands

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