Private Equity, Jobs and Productivity: Reply to Davis, Haltiwanger, Handley, Jarmin, Lerner, and Miranda (2018) (A Comment deux)

42 Pages Posted: 23 May 2018 Last revised: 25 Nov 2018

See all articles by Brian Ayash

Brian Ayash

California State Polytechnic University, San Luis Obispo - Finance Area

Mahdi Rastad

Orfalea College of Business, California State Polytechnic University

Date Written: November 1, 2018

Abstract

Davis, Haltiwanger, Handley, Jarmin, Lerner, and Miranda (2014) provide evidence that the impact of controversial leveraged buyouts on employment is modest. Our paper challenges this view. We argue that the sample tested in Davis et al. (2014) is not specific to controversial leveraged buyouts as claimed. We show that while the Davis et al. (2014) sample does include some controversial leveraged buyouts, most buyouts tested are growth equity and other private equity investments. Using a new public dataset specific to controversial leveraged buyouts, we show that employment declines are economically significant and worthy of public concern.

Keywords: Leveraged Buyouts, Employment, Private Equity, Growth Equity

JEL Classification: G23, G32, G33, G34, J21, J63

Suggested Citation

Ayash, Brian and Rastad, Mahdi, Private Equity, Jobs and Productivity: Reply to Davis, Haltiwanger, Handley, Jarmin, Lerner, and Miranda (2018) (A Comment deux) (November 1, 2018). Available at SSRN: https://ssrn.com/abstract=3170413 or http://dx.doi.org/10.2139/ssrn.3170413

Brian Ayash (Contact Author)

California State Polytechnic University, San Luis Obispo - Finance Area ( email )

College of Business
San Luis Obispo, CA 93407
United States

Mahdi Rastad

Orfalea College of Business, California State Polytechnic University ( email )

San Luis Obispo, CA 93407
United States

HOME PAGE: http://www.cob.calpoly.edu/faculty/mahdi-rastad/

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