LBOs, Reversions and Implicit Contracts
AbstractThe conventional view of going-private transactions is that they are designed to enhance the efficiency of the firm. A starkly different view is that these and other control transactions are motivated to effect transfers from other stakeholders in the firm to equity holders. This study exploits data describing pension terminations as a way to test these theories. The authors conclude that the efficiency theory can plausibly explain a substantial number of leveraged-buyout-related terminations, but not enough to undermine the transfer theory. More specific predictions from the efficiency theory are needed to structure more exacting tests. Copyright 1992 by American Finance Association.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by American Finance Association in its journal Journal of Finance.
Volume (Year): 47 (1992)
Issue (Month): 1 (March)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Gottschalg, Oliver & Berg, Achim, 2005. "Understanding value generation in buyouts," Les Cahiers de Recherche 824, HEC Paris.
- Lila J. Truett & Dale B.Truett, . "Firm Size and Efficiency in the South African Motor Vehicle Industry," Working Papers 0021, College of Business, University of Texas at San Antonio.
- Benjamin M. Friedman, 1995. "Economic Implications of Changing Share Ownership," NBER Working Papers 5141, National Bureau of Economic Research, Inc.
- David Neumark & Steven A. Sharpe, 1992.
"Hostile Takeovers and Expropriation of Extramarginal Wages: A Test,"
NBER Working Papers
4101, National Bureau of Economic Research, Inc.
- David Neumark & Steven A. Sharpe, 1992. "Hostile takeovers and expropriation of extramarginal wages: a test," Finance and Economics Discussion Series 197, Board of Governors of the Federal Reserve System (U.S.).
- Renneboog, L.D.R. & Simons, T., 2005.
"Public-to-Private Transactions: LBOs, MBOs, MBIs and IBOs,"
2005-023, Tilburg University, Tilburg Law and Economic Center.
- Renneboog, L.D.R. & Simons, T., 2005. "Public-to-Private Transactions: LBOs, MBOs, MBIs and IBOs," Discussion Paper 2005-98, Tilburg University, Center for Economic Research.
- Hiroshi Osano, 2001. "Stock Options and Employees' Firm-Specific Human Capital under the Threat of Divesture and Aquisition," Working Papers 01-10, Ohio State University, Department of Economics.
- Yousfi, Ouidad, 2007.
"Le rôle de la dette dans le LBO : une revue de la littérature
[Debt in LBO projects: survey of the literature]," MPRA Paper 28708, University Library of Munich, Germany, revised 2007.
- Ouidad Yousfi, 2007. "Le rôle de la dette dans le LBO : une revue de la littérature," EconomiX Working Papers 2007-8, University of Paris West - Nanterre la Défense, EconomiX.
- Brown, David T. & Fee, C. Edward & Thomas, Shawn E., 2009. "Financial leverage and bargaining power with suppliers: Evidence from leveraged buyouts," Journal of Corporate Finance, Elsevier, vol. 15(2), pages 196-211, April.
- Thorsten Knauer & Friedrich Sommer, 2012. "Interest barrier rules as a response to highly leveraged transactions: Evidence from the 2008 German business tax reform," Review of Accounting and Finance, Emerald Group Publishing, vol. 11(2), pages 206-232, May.
- Van de Gucht, Linda M. & Moore, William T., 1998. "Predicting the duration and reversal probability of leveraged buyouts," Journal of Empirical Finance, Elsevier, vol. 5(4), pages 299-315, October.
- Ouidad Yousfi, 2009. "Leveraged Buy Out: Dynamic agency model with write-off option," EconomiX Working Papers 2009-13, University of Paris West - Nanterre la Défense, EconomiX.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.