This paper examines the impact of pre-pandemic digitalization investments on postpandemic performance, using data from Turkiye. We compare firms that adopted digital technologies before the pandemic with those that did not, employing a coarsened exact matching and difference-in-differences approach. Our first contribution is the development of a novel firm-level digitalization index, constructed using firm-to-firm trade data. The findings show that digitalized firms outperformed their non-digitalized pairs across key metrics, including assets, sales, employment, profitability, and export shares. To explain these results, we identify key channels through which digitalization enhanced performance which is our second contribution. Specifically, we show that digitalized firms expanded their trade networks—adding more partners and operating over greater distances—reduced labor churn rates, and improved

productivity and competitiveness.

We examine the relation between voluntary audit and the cost of debt in private firms. We use a sample of 7,420 small private firms operating in the period 2006-2022 that are not subject to mandatory audits. Firms self-select into voluntary audits because of the economic setting (e.g., ownership complexity, export, subsidiary status) or because firm fundamentals limit their access to financial debt. In the outcome analyses, we find that voluntary audits result in higher, rather than lower, interest rates in the range 1.2-4.0 percentage points on average. This effect is present regardless of the perceived audit quality (Big-4 vs. non-Big-4), but is stronger for non-Big-4 audits where auditees have a stronger position relative to auditors. Audited firms’ earnings are less informative about future operating performance. Voluntary audits facilitate access to financial debt for high-risk firms. The price paid is reflected in higher interest rates for voluntary audits – firms with higher information/fundamental risk.

In this paper, we test whether the use of PE has an impact on the firm and its management practices, focusing on Portuguese deals spanning the last 20 years, which to our knowledge is a new contribution. To do so, we collect data on the total number of known transactions, which yields 1,448 transactions, of which 610 are PE deals and 838 are VC deals. We use panel data models to analyze whether PE determines firm performance and managerial practices by comparing the pre-PE period with the post-PE period, while relating the entry of PE investors to a common timeline. Our preliminary results suggest that, on average, firm financial performance improves after a PE deal, as compared to the previous period and the effect is more pronounced on the second year after the deal is completed. The influence on managerial practices is also positive

We demonstrate how private equity (PE) buyouts affect target firms’ trade credit provision by enhancing their bargaining power. Using detailed data on a sample of UK private companies, we find that suppliers extend less trade credit to customers following PE buyouts. The effect is stronger in companies with weaker competitive positions before the buyout. Further analyses show that PE buyouts elevate bargaining power of the target by increasing outside options and negotiation skills. Finally, we provide evidence that targets are able to reduce excess working capital investment post-buyout, fostering asset growth.