Efficiency Gains in Unsuccessful Management Buyouts
AbstractThis article uses a sample of 120 unsuccessful management buyouts to test whether operational improvements following successful management buyouts are a result of organizational changes or private information. The findings are consistent with the organizational changes hypothesis. Firms with an unsuccessful management buyout had no increase in operating performance following the buyout attempt. In addition, the cumulative abnormal stock return from before the attempted buyout until two years after the attempt is insignificantly different from 0 percent. The author also finds that management turnover following an unsuccessful management buyout is significantly higher than normal. Copyright 1994 by American Finance Association.
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Bibliographic InfoArticle provided by American Finance Association in its journal Journal of Finance.
Volume (Year): 49 (1994)
Issue (Month): 2 (June)
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- Cornelli, Francesca & Li, David Daokui, 2006. "Ex Ante Effects of Ex Post Managerial Ownership," CEPR Discussion Papers 5821, C.E.P.R. Discussion Papers.
- Gottschalg, Oliver & Berg, Achim, 2005. "Understanding value generation in buyouts," Les Cahiers de Recherche 824, HEC Paris.
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