Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/306864 
Year of Publication: 
2024
Citation: 
[Journal:] Journal of Corporate Finance [ISSN:] 1872-6313 [Volume:] 89 [Article No.:] 102686 [Publisher:] Elsevier [Place:] Amsterdam [Year:] 2024 [Pages:] 1-18
Publisher: 
Elsevier, Amsterdam
Abstract: 
This paper examines whether private equity (PE)-backed companies are better able to remain active on export markets compared to similar non-PE firms, when hit by a negative shock. We look at two such recent shocks, namely the global financial crisis (GFC) and COVID-19 pandemic. We construct two matched samples, one for each crisis period, to assess the resilience of exporting under PE ownership in recessionary periods. We then explore how improvements in working capital management allow PE-backed firms to engage in international activities and maintain their export relationships relative to similar, non-PE-backed firms. Our results show that the export activities of PE-backed firms are significantly more resilient to the effects of the GFC but less pronounced following COVID-19. PE investment enhances working capital management, which in turn improves the persistence in export markets at the onset of the crises.
Subjects: 
Private equity buyouts
exporting
working capital
recessions
JEL: 
F14
G01
G32
G34
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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