Private Equity Buyouts, Credit Constraints, and Firm Exports
Adam Smith Business School Working Paper Series
40 Pages Posted: 10 May 2021
Date Written: May 7, 2021
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: Suggested Citation