Politically Connected Private Equity and Employment

  title={Politically Connected Private Equity and Employment},
  author={M C S R Faccio and Hung-Chia Hsu},
This paper investigates the employment consequences of buyouts by politically connected private equity firms. We find that politically connected private equity firms boost employment at their target firms following a buyout. The increase in employment is both statistically and economically significant. We provide evidence that the results are unlikely to be due to politically connected private equity firms selecting different types of targets than non-connected firms. In fact, employment drops… CONTINUE READING

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