Private Equity Buyouts, Credit Constraints, and Firm Exports

Adam Smith Business School Working Paper Series

40 Pages Posted: 10 May 2021

See all articles by Paul Lavery

Paul Lavery

Adam Smith Business School, University of Glasgow

José María Serena

Bank for International Settlements (BIS)

Marina‐Eliza Spaliara

University of Glasgow - Adam Smith Business School

Serafeim Tsoukas

University of Glasgow - Adam Smith Business School

Date Written: May 7, 2021

Abstract

We analyse the impact of private equity buyouts on firm exports, on a panel of UK non-financial firms over 2004--2017. Using difference-in-differences estimations, we show that private equity ownership increases the probability of exporting, the value of exports, and the export to sales ratio. We further show that the positive impact of private equity ownership on exports holds only after private-to-private buyouts, or acquisitions of small or young target firms. Our findings suggest that private equity investors mitigate the credit constraints faced by their portfolio companies, hence boosting their exports.

Keywords: Private equity buyouts; exporting; credit constraints; transactions

JEL Classification: G34, G32

Suggested Citation

Lavery, Paul and Serena, Jose Maria and Spaliara, Marina-Eliza and Tsoukas, Serafeim, Private Equity Buyouts, Credit Constraints, and Firm Exports (May 7, 2021). Adam Smith Business School Working Paper Series, Available at SSRN: https://ssrn.com/abstract=3841484 or http://dx.doi.org/10.2139/ssrn.3841484

Paul Lavery (Contact Author)

Adam Smith Business School, University of Glasgow ( email )

University Avenue
Glasgow, Scotland G12 8QQ
United Kingdom
07979140811 (Phone)

Jose Maria Serena

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

Marina-Eliza Spaliara

University of Glasgow - Adam Smith Business School ( email )

Glasgow, Scotland
United Kingdom

Serafeim Tsoukas

University of Glasgow - Adam Smith Business School ( email )

Glasgow, Scotland
United Kingdom

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