54 Pages Posted: 8 Feb 2016 Last revised: 3 Nov 2016
Date Written: August 25, 2016
This paper presents evidence that workplace injury rates decline substantially after private equity buyouts. The decline holds for buyouts of public firms but not private firms, and is greater for public firms likely facing more pressure pre-buyout to deliver short-term performance, suggesting that alleviating pressure on managers to make short-sighted decisions can improve workplace safety. There is some evidence that high levels of buyout debt lessen the decline in injury rate. Finally, employment after buyouts declines more at relatively safe establishments, though this effect is small relative to the injury rate decline within establishments.
Keywords: Private equity buyouts, workplace safety, labor and finance
JEL Classification: G32, J28
Suggested Citation: Suggested Citation
Cohn, Jonathan B. and Nestoriak, Nicole and Wardlaw, Malcolm, How Do Employees Fare in Private Equity Buyouts? Evidence from Workplace Safety Records (August 25, 2016). Available at SSRN: https://ssrn.com/abstract=2728704 or http://dx.doi.org/10.2139/ssrn.2728704