The Impact of Lbos on Investment Policies and Operations of Acquired French Firms
AbstractThis paper evaluates the extent that French LBO targets' investment policy and operations can account for their overperformance discrepancy. Our empirical study has been carried out on 132 French LBOs between 1989 and 1994. The results show that the abnormal plunge in economic return cannot be explained by overinvestments or by inefficient working capital management. Nevertheless, abnormal increases in wages, supplies and/or sales price reductions appear to be prominent.
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Bibliographic InfoPaper provided by Université de Bourgogne - CREGO EA7317 Centre de recherches en gestion des organisations in its series Working Papers CREGO with number 1021002.
Length: 30 pages
Date of creation: Oct 2002
Date of revision:
Publication status: published in Finance Contrôle Stratégie, vol.5, n°4, décembre 2002.
Note: version française publiée dans Finance Contrôle Stratégie, vol.5, n°4, décembre 2002.
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Postal: 2 Bd Gabriel, BP 26611, 21066 Dijon Cedex, France
Postal: Angèle Renaud, CREGO, 2 Bd Gabriel, BP 26611, 21066 Dijon Cedex, France
Find related papers by JEL classification:
- G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
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Working Papers CREGO
1020702, Université de Bourgogne - CREGO EA7317 Centre de recherches en gestion des organisations.
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