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Private Equity, HRM, and Employment

Bacon, N., Wright, M., Ball, R. and Meuleman, M. (2013). Private Equity, HRM, and Employment. Academy of Management Perspectives, 27(1), pp. 7-21. doi: 10.5465/amp.2012.0130

Abstract

We analyze the employment, wages, human resource management, and industrial relations impact of private equity, drawing on empirical evidence from various countries and institutional contexts. We identify different types of private equity-backed buyouts and highlight the impact of creating value through long- and short-term ownership and strategies emphasizing increased efficiency or growth. We show that the effects may vary between buyout types and that it is inappropriate to regard most private equity leveraged buyouts as a zero-sum game with value transferred to shareholders at workers' expense. We conclude that regulating private equity in favor of the organizational model of managerial capitalism is unlikely to necessarily further workers' interests.

Publication Type: Article
Publisher Keywords: Research Methods, Research Design
Subjects: H Social Sciences > HD Industries. Land use. Labor
Departments: Cass Business School > Management
URI: http://openaccess.city.ac.uk/id/eprint/6201
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