Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 30, 2019 erstellt
Beschreibung:
This paper examines the differential impact of an unexpected regulatory banking sector shock on the portfolio companies of the private equity arms of affected and unaffected banks. Robust to a battery of checks, we find that portfolio companies of the private equity subsidiaries of banks affected by the 2011 EBA Capital Exercise suffer significantly weaker investment and financing at the onset of the shock, and subsequently poorer performance, relative to portfolio companies of unaffected banks. The results are amplified where the portfolio company is more likely to be financially constrained and where the private equity investor is less experienced. Our findings confirm recent literature's concerns over the approach to the capital regulation of banks and its impact on the real economy