Many acquisitions by private equity (PE) firms are conducted by “clubs,” where a number of PE firms join together to submit a single bid. We present a novel analysis of the economics of club bidding by private equity firms based on the notion that club formation may create value at the target firm by allowing the different dimensions of value creation of each individual PE firm to be aggregated...

This paper presents evidence of a large, persistent decline in establishment-level workplace injury rates after private equity (PE) buyouts of publicly-traded firms but not already-private firms. Cross-sectional evidence further links the public-firm postbuyout decline to alleviation of market pressure to focus on short-term performance. Employment drops more in low-injury risk establishments, ...

Close corporations account for 51 percent of the private sector output and 52 percent of all private employment in the US. Understanding governance issues and agency problems facing these firms is therefore of considerable importance. Legal scholars extensively recommend that the main shareholder in close firms surrender some control to minority shareholders at the outset in order to improve ov...

Background Innovative biotechnology firms play major roles in the development of biotechnology industry because of their product innovations. Since 2005, the Malaysian government has increased support towards the biotechnology sector to drive this industry forward. The aim of this paper was to identify the challenges in developing biotechnology industry from the prospective of private biotechno...

This paper suggests a solution to the puzzling finding documented in Moskowitz and Vissing-Jorgensen (2002) that the return to an index of private equity is equal to the return to the CRSP index of public equity even though investment in private firms is substantially riskier. It presents an occupational choice model where human and financial capital can be jointly invested in a private busines...

Privacy is a central concern in the information age. In some circumstances, customers’ decisions whether to use firms’ services rely on the extent of privacy that firms are able to provide, for example, the use of certain banking services, health care information technology [7]...etc. Firms thus face crucial assessment of investment on privacypreserving technologies. Two important factors affec...

Employment sector and employer size account for substantial variation in workers' participation in employer-sponsored retirement plans. Other things being equal, employees in the public sector--that is, federal, state, and local governments--are much more likely to be offered a retirement plan than workers in the private sector. Within the private sector, workers in firms with 100 or more emplo...

This paper explores the effects of commercial subsidies to R&D by means of a model of firms’ decisions about performing R&D when some government support can be expected. The model is estimated with an unbalanced panel sample of more than 2,000 performing and non-performing Spanish manufacturing firms. For the non-performing firms, we compute the trigger subsidies required to induce R&D spending...

Governments keep subsidizing R&D of IT entrepreneurial firms greatly. However, the effect of these grants remains unclear. Acknowledging this gap, this study provides a nuanced perspective to understand the influence of government R&D grants on IT entrepreneurial firm performance. Based on the literature on organizational learning, we categorize government R&D grants into two types: explorative...

The Securities Exchange Act of 1934 was the central regulatory event of the modern financial era. The Act required firms listed on U.S. exchanges to provide detailed financial disclosure and provided means for private investors and public agencies to enforce these new disclosure duties. We ask whether the Act was an improvement on the prior legal regime, where disclosure was left to private con...