The Harvard Law School Forum on Corporate Governance https://corpgov.law.harvard.edu The leading online blog in the fields of corporate governance and financial regulation. Wed, 17 Jun 2026 15:48:10 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.8 https://corpgov.law.harvard.edu/wp-content/uploads/2024/02/cropped-photography-4-e1706898544564-1-32x32.png Private Equity and Long-Run Investment – The Harvard Law School Forum on Corporate Governance https://corpgov.law.harvard.edu 32 32 Private Equity and Long-Run Investment https://corpgov.law.harvard.edu/2010/10/01/private-equity-and-long-run-investment/?utm_source=rss&utm_medium=rss&utm_campaign=private-equity-and-long-run-investment https://corpgov.law.harvard.edu/2010/10/01/private-equity-and-long-run-investment/#comments Fri, 01 Oct 2010 13:01:32 +0000 http://blogs.law.harvard.edu/corpgov/?p=13120?d=20150106102458EST Posted by R. Christopher Small, Co-editor, HLS Forum on Corporate Governance and Financial Regulation, on Friday, October 1, 2010
Editor's Note:

This paper comes to us from Josh Lerner, Professor of Finance at Harvard Business School; Morten Sørensen of the Finance Department at Columbia University; and Per Strömberg of the Finance Department at the University of Chicago and the Stockholm School of Economics.

In the paper Private Equity and Long-Run Investment: The Case of Innovation, forthcoming in the Journal of Finance, we examine the changes in patenting behavior of 495 firms with at least one successful patent application filed in the period from three years before to five years after being part of a private equity transaction. A long-standing controversy is whether LBOs relieve managers from short-term pressures from public shareholders, or whether LBO funds themselves are driven by short-term profit motives and sacrifice long-term growth to boost short-term performance.

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