On the real effects of private equity investment: evidence from new ...

Exit USExit rates for US corporations. Calculated for 2-digit NACE industries (originaldata on a 4-digit SIC level). Average for the years 1998-99. Source: Dun &Bradstreet.Entry by SMEs US Entry rates for US corporations with less than 250 employees. Calculated for 2-digit NACE industries (original data on a 4-digit SIC level). Average for the years1998-99. Source: Dun & Bradstreet.Entry UKCapital intensityR&D intensityFinancial dependenceIndustry growthEntry rates for UK corporations. Calculated for 2-digit NACE industries (originaldata on a 4-digit SIC level). Average for the years 1998-99. Source: Dun &Bradstreet.Measure of physical capital usage, equal to the industry-level median of the ratioof physical capital used to sales. The numerator and denominator are summed overall years for each firm before dividing. Computed for all U.S. firms for the period1990-99. Calculated for 2-digit NACE industries (original data on a 4-digit SIClevel). Source: Compustat.Measure of dependence on research and development, equal to the industry-levelmedian of the ratio of R&D expenses to sales. The numerator and denominator aresummed over all years for each firm before dividing. Computed for all U.S. firmsfor the period 1990-99. Calculated for 2-digit NACE industries (original data on a4-digit SIC level). Source: Compustat.Industry-level median of the ratio of capital expenditures minus cash flow overcapital expenditures. The numerator and denominator are summed over all yearsfor each firm before dividing. Cash flow is defined as the sum of funds fromoperations, decreases in inventories, decreases in receivables, and increases inpayables. Capital expenditures include net acquisitions of fixed assets. Thisdefinition follows Rajan and Zingales (1998). We compute this measure for allU.S. firms for the period 1990-99. Calculated for 2-digit NACE industries(original data on a 4-digit SIC level). Source: Compustat.Measure of industry growth, equal to the industry-level median of value added perworker. The numerator and denominator are summed over all years for each firmbefore dividing. Computed for all U.S. firms for the period 1990-99. Calculatedfor 2-digit NACE industries (original data on a 4-digit SIC level). Source:Compustat.Country-level variablesPrivate credit over GDPAccess to financeInvestors’ protectionRatio of domestic credit to the private sector scaled by GDP, average over theperiod 1995-99. Source: International Monetary Fund’s International FinancialStatistics (IMF-IFS).General index of access to external finance by households and businesses. Source:Finance for All? The World Bank, 2007.Index of the degree of protection of investors, calculated as an average of threeindices: transparency of transactions, liability for self-dealing, and shareholders’ability to sue officers and directors for misconduct; averaged over 1995-1999.Source: Doing Business Database (WB).ECBWorking Paper Series No 1078August 200947