Measuring the Effect of Restructuring on Corporate Performance: The Case of Management Buyouts
AbstractRecent research has attempted to document that the financial gains associated with takeovers, LBOs, and other types of restructuring are attributable to subsequent improvements in operating performance. In this paper, the authors develop a more general framework for measuring the effect of corporate restructuring on performance and apply the framework to a sample of firms taken private by their management. They demonstrate that the estimation approaches employed in the literature embody restrictions on the general framework which the data can reject. However, the authors' best estimates provide evidence that management buyouts improve corporate performance, and the magnitudes of these improvements are similar to existing estimates. Copyright 1994 by MIT Press.
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Bibliographic InfoArticle provided by MIT Press in its journal Review of Economics & Statistics.
Volume (Year): 76 (1994)
Issue (Month): 3 (August)
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- Renneboog, L.D.R. & Simons, T., 2005.
"Public-to-Private Transactions: LBOs, MBOs, MBIs and IBOs,"
2005-98, Tilburg University, Center for Economic Research.
- Renneboog, L.D.R. & Simons, T., 2005. "Public-to-Private Transactions: LBOs, MBOs, MBIs and IBOs," Discussion Paper 2005-023, Tilburg University, Tilburg Law and Economic Center.
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- Aurelie Sannajust, 2009. "Les motivations et la performance des opérations de retrait de la cote: une revue," Post-Print halshs-00521178, HAL.
- Lori Holder-Webb & Thomas Lopez & Philip Regier, 2005. "The Performance Consequences of Operational Restructurings," Review of Quantitative Finance and Accounting, Springer, vol. 25(4), pages 319-339, December.
- Cohn, Jonathan B. & Mills, Lillian F. & Towery, Erin M., 2014. "The evolution of capital structure and operating performance after leveraged buyouts: Evidence from U.S. corporate tax returns," Journal of Financial Economics, Elsevier, vol. 111(2), pages 469-494.
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