Private Equity Buyouts and Workplace Safety

Research Seminars

The paper presented in this ZEW Research Seminar showcases evidence of a large, persistent decline in establishment-level workplace injury rates after private equity (PE) buyouts of publicly-traded U.S. firms. The steepness of the decline increases with proxies for pre-buyout short-termism and is unrelated to changes in governance or exposure to automation and outsourcing. Firms also experience declines in safety inspection violations after buyouts. Firms that reduce injury rate post-buyout more are more likely to exit via an IPO. Finally, we find that higher-injury risk establishments reduce employment less post-buyout than lower-injury risk establishments.

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ZEW – Leibniz-Zentrum für Europäische Wirtschaftsforschung

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ZEW – Leibniz-Zentrum für Europäische Wirtschaftsforschung

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L 7, 1, 68161 Mannheim
  • Room Heinz König Hall