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

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: August 10, 2021

Abstract

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

Lavery, Paul and Serena, Jose Maria and Spaliara, Marina-Eliza and Tsoukas, Serafeim, Private Equity Buyouts and Firm Exports: Evidence from UK Firms (August 10, 2021). BIS Working Papers No 961, 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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