PT - JOURNAL ARTICLE AU - Antonio Meles AU - Claudio Porzio AU - Vincenzo Verdoliva TI - Mala Tempora Currunt: <em>How Do PE-Backed</em> <br/> <em>Firms React to Financial Crises?</em> AID - 10.3905/jpe.2014.17.3.021 DP - 2014 May 31 TA - The Journal of Private Equity PG - 21--30 VI - 17 IP - 3 4099 - https://pm-research.com/content/17/3/21.short 4100 - https://pm-research.com/content/17/3/21.full AB - How has PE backing influenced the operating performance of firms (primarily in terms of ROA and ROE) during the recent financial crisis (2006–2010)? In this study, the authors use a dataset of 939 European PE-backed firms and a control sample of 2,516 European non-PE-backed firms. They find that PE-backed firms are more profitable than non-PE-backed firms. Even though the recent financial crisis had a negative effect on the operating performance of both PE- and non-PE-backed firms, the authors report strong evidence that the former have a greater ability to withstand turbulent economic environments.TOPICS: Private equity, financial crises and financial market history, developed, statistical methods