City Research Online

Abstract

This thesis consists of three papers in empirical corporate finance.

The first paper studies how private equity ownership affects outcomes in childcare, a
highly regulated and subsidised public service. Using data on Dutch childcare centres,
the results show that PE-owned centres charge higher prices, partly by capturing more
public subsidies, but also deliver higher quality by adapting more effectively to stricter
regulation. Beyond these direct effects, the evidence is consistent with negative local
quality spillovers, as competing providers record more regulatory violations. Prices are set
especially high in markets with less competition, underscoring how regulation, subsidies,
and market structure jointly shape outcomes.

The second paper examines whether the competitive effects of local market consolidation
depend on acquirer identity. Using comprehensive administrative data on all English
care homes (2013–2025) linked to ownership information, the analysis compares acquisitions by private-equity backed providers with those of other large corporate chains. Both PE and corporate acquirers reduce quality while increasing capacity utilisation; cross-sectional evidence is consistent with higher prices. These patterns are consistent with
market power effects dominating merger efficiencies. PE acquirers achieve larger utilisation
gains but otherwise behave similarly to corporate chains. These findings indicate
that local market structure matters more than owner identity, and that current regulatory
focus on PE ownership may be misplaced relative to concerns about cumulative local
consolidation by any large operator.

The third paper investigates whether mandatory CSR disclosure crowds out or crowds
in voluntary reporting by firms outside the regulatory boundary. Using the UK’s implementation of the EU Non-Financial Reporting Directive, the evidence shows that unregulated firms in industries more exposed to regulated peers increase their environmental and social disclosure after the mandate. The spillover emerges after regulated peers’ enhanced reports become publicly observable and is stronger among later-filing firms with more time to observe those reports. These patterns suggest that mandatory CSR reports function as reporting benchmarks rather than information substitutes, inducing voluntary disclosure beyond the firms legally required to comply.

Publication Type:	Thesis (Doctoral)
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management H Social Sciences > HF Commerce H Social Sciences > HG Finance H Social Sciences > HJ Public Finance H Social Sciences > HV Social pathology. Social and public welfare
Departments:	Bayes Business School Bayes Business School > Bayes Business School Doctoral Theses Doctoral Theses

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