The impact of corporate governance mechanisms on value increase in leveraged buyouts

被引:88
作者
Nikoskelainen, Erkki
Wright, Mike
机构
[1] Swedish Sch Econ & Business Adm, FIN-00101 Helsinki, Finland
[2] Univ Nottingham, Sch Business, Ctr Management Buyout Res, Nottingham NG8 1BB, England
关键词
leveraged buyout; management buyout; internal rate of return; corporate governance;
D O I
10.1016/j.jcorpfin.2007.04.002
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
Using a novel, hand-collected dataset, comprising 321 exited buyouts in the UK in the period 1995 to 2004, this study examines the realized value increase in exited leveraged buyouts. Testing the free cash flow theory, we show that value increase and return characteristics of LBOs are to some extent related to the corporate governance mechanisms resulting from a leveraged buyout, especially managerial equity holdings. We show that return characteristics and the probability of a positive return are mainly related to size of the buyout target and acquisitions carried out during the holding period. Furthermore, we find that the return characteristics between insider driven buyouts and outsider driven buyins are different. (c) 2007 Elsevier B.V. All rights reserved.
引用
收藏
页码:511 / 537
页数:27
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