6533b872fe1ef96bd12d2e3a
RESEARCH PRODUCT
The Impact of Lbos on Investment Policies and Operations of Acquired French Firms
Philippe DesbrièresAlain Schattsubject
050208 finance05 social sciencesWorking capitalEconomic returnjel:G31Monetary economicsInvestment policyInvestment (macroeconomics)General Business Management and AccountingEmpirical research0502 economics and business8. Economic growthBusinessLeveraged buy-out;performance;investment policy;operationsSale price050203 business & managementdescription
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.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2002-10-01 |