Private equity financing & firm

Section 6 examines the persistence of the productivity effect; section 7 examines the effect of PE ownership on productivity during the the global financial crisis and the COVID-19 pandemic. [...] Following the strong boom in the early to mid-2000s, the market experienced a large decline at the onset of the global financial crisis, and likewise during the COVID-19 pandemic. [...] We then compute the difference between the employment change of the target and the mean employment change of the control firms: this is the adjusted change of employment at the target level. [...] We then compute the difference between the capex change of the target and the mean capex change of the control firms: this is the adjusted change of capex at the target level. [...] We report the coefficients for β1, which measures the average effect of PE ownership on target firm performance during the holding period, β3, which measures the average effect in the years following the exit, and the linear combination of β1 + β3, which measures the longer run effect of PE ownership.