Private equity and human capital risk


Antoni, Manfred ; Maug, Ernst ; Obernberger, Stefan



DOI: https://doi.org/10.2139/ssrn.2602771
URL: http://ssrn.com/abstract_id=2602771
Additional URL: http://www.ecgi.global/sites/default/files/working...
Document Type: Working paper
Year of publication: 2017
The title of a journal, publication series: ECGI Finance Working Paper
Volume: 518
Place of publication: Brussels [u.a.]
Publishing house: European Corp. Governance Inst.
Publication language: English
Institution: Business School > ABWL u. Corporate Finance (Maug)
Subject: 330 Economics
Abstract: We study the impact of leveraged buyouts in Germany on employees’ wages, employment, and career paths. We contrast different views of buyouts, which see LBOs as facilitators of organizational and technological modernization, or as vehicles for transferring wealth from employees to shareholders. We conduct matched-sample difference-in-fifferences estimations with more than 147,000 LBO employees and a carefully matched control group. LBOs increase annual income in the short term, but reduce income by about 11% in the long term. White-collar workers and middle management lose most, probably because of organizational streamlining. LBOs in our sample do not foster trends related to technological modernization such as skill-biased technological change or job polarization. We find a strong negative impact of LBOs for older employees, but no support for the notion that shareholders benefit from LBOs by forcing employees to accept lower wages. All human capital impairments are borne by employees who leave the firm and become unemployed or employed in a different industry.

Dieser Eintrag ist Teil der Universitätsbibliographie.




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Antoni, Manfred ; Maug, Ernst ; Obernberger, Stefan (2017) Private equity and human capital risk. ECGI Finance Working Paper Brussels [u.a.] 518 [Working paper]


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