Publication Type
PhD Dissertation
Version
publishedVersion
Publication Date
3-2025
Abstract
I investigate how firms respond to reduced private equity buyout activity in their home states by exploiting the state-by-state adoption of laws that increase the cost of buyouts. I find evidence suggestive of reduced firm efficiency. The firms also become less likely to go bankrupt or to relocate to other states. These findings suggest that the firms' managers may be starting to enjoy the quiet life. I also find a reduction in layoffs. Overall, the results indicate a trade-off: Whereas reduced private equity buyout activity increases managerial entrenchment, it also lowers firm exits and strengthens employees' job security.
Keywords
Private Equity, Buyout Activity, Market for Corporate Control, Corporate Governance
Degree Awarded
PhD in Business (Finance)
Discipline
Corporate Finance | Finance and Financial Management
Supervisor(s)
OTTO, Clemens Antonius
First Page
1
Last Page
111
Publisher
Singapore Management University
City or Country
Singapore
Citation
LO, Yi-Hsin.
How do firms respond to reduced private equity buyout activity?. (2025). 1-111.
Available at: https://ink.library.smu.edu.sg/etd_coll/685
Copyright Owner and License
Author
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.