Financial Management articles from March 1992

Financial Management archives from March 1992

On the capital structure of leveraged buyouts. (includes appendix) (Leveraged Buyouts Special Issue)
March 22, 1992... * In a leveraged buyout (LBO) transaction, a group of investors finance the acquisition of a corporation or division mainly by borrowing against the target's future cash flows. While not new, LBOs have grown in frequency and size in recent...

Operating performance in leveraged buyouts: evidence from 1985-1989. (Leveraged Buyouts Special Issue)
March 22, 1992... * This study investigates the consequences of leveraged buyouts (LBOs) on operating performance using a sample of 44 going-private transactions completed in the period 1985-1989. Previous studies have documented increases in before- and...

The crash of the Revco leveraged buyout: the hypothesis of inadequate capital. (Leveraged Buyouts Special Issue)
March 22, 1992... * On July 28, 1988, Revco Drug Stores filed for bankruptcy in what is arguably the most notable failure in the annals of highly leveraged transactions. The firm collapsed merely 19 months after going private, a life span astonishing for its...

Leveraged buyouts and tax incentives. (Leveraged Buyouts Special Issue)
March 22, 1992... * Leveraged buyout activity increased from 99 transactions worth $3 billion in 1981 [18] to peak 338 transactions worth over $61 billion in 1989 [19]. Suggested motivating forces for corporate acquisitions include non-value-maximizing behavior...

Board composition and shareholder wealth: the case of management buyouts. (Leveraged Buyouts Special Issue)
March 22, 1992... * The role of the board of directors (BOD) in the corporate governance process had received considerable research attention in recent years. Although the board is legally authorized to ratify monitor managerial decisions, critics have argued...

Does an industry effect exist for leveraged buyouts? (Leveraged Buyouts Special Issue)
March 22, 1992... * The process of taking a firm private (called "going private" or "leveraged buyout") has received much attention in the financial literature. In a leveraged buyout (LBO), shareholders earn a substantial premium for their shares over recent...

Bondholder wealth effects of management buyouts. (includes appendix) (Leveraged Buyouts Special Issue)
March 22, 1992... * A principal feature of the financial landscape during the 1980s has been the increasing frequency with which U.S. corporations have undergone leveraged buyouts (LBOs). These transactions involve the substitution of debt for equity and the...