Private Equity Buyouts and Firm Exports: Evidence from UK Firms
BIS Working Papers No 961
70 Pages Posted: 10 May 2021 Last revised: 17 Aug 2021
Date Written: August 10, 2021
This paper examines the impact of private equity buyouts on the export activity of target firms. We exploit data on UK firms over the 2004-2017 period, and use difference-in-differences estimations on matched target versus non-target firms. Following private equity buyouts, non-exporting firms are more likely to begin exporting, and target firms are likewise more likely to increase their value of exports and their export intensity. Evidence from split-sample analysis further suggests that these patterns are consistent with private equity investors relaxing financial constraints and inducing productivity improvements.
Keywords: Private equity buyouts; exporting; financial constraints; transactions
JEL Classification: G34, G32
Suggested Citation: Suggested Citation