Fiche du document
2014
- handle: 10670/1.abjjks
- halshs: halshs-01006395
Mots-clés
Leveraged Buyouts innovation research and development economic crisis private equity financial constraints O - Economic Development, Innovation, Technological Change, and Growth/O.O3 - Innovation • Research and Development • Technological Change • Intellectual Property Rights G - Financial Economics/G.G3 - Corporate Finance and GovernanceSujets proches
Businesses Firms Companies Enterprises Business organizations Organizations, BusinessCiter ce document
Fabio Bertoni et al., « Innovation and R&D investments by leveraged buyout companies in times of crisis », HAL-SHS : économie et finance, ID : 10670/1.abjjks
Métriques
Partage / Export
Résumé
We study innovation and R&D investments made from 2008 to 2010 by UK companies that were the targets of leveraged buyout (LBO) in previous years. We find that overall, LBO companies do not exhibit lower innovation and R&D investments than non-LBO companies during the crisis, with other things being equal. However, innovation and R&D investments decline substantially in LBO companies that were financially constrained before the deal. We argue that in unfavorable market conditions, LBOs tend to exacerbate the issues related to investments in innovation in firms facing financial constraints.