The Impact of Lbos on Investment Policies and Operations of Acquired French Firms
This 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.
|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.|
|Contact details of provider:|| Postal: |
|Order Information:|| Postal: Angèle Renaud, CREGO, 2 Bd Gabriel, BP 26611, 21066 Dijon Cedex, France|
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Working Papers CREGO
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