Please use this identifier to cite or link to this item:
https://ruomo.lib.uom.gr/handle/7000/309
Title: | The wealth effects of public-to-private LBOs: Evidence from Europe |
Authors: | Dasilas, Apostolos Grose, Chris |
metadata.dc.contributor.other: | Grose, Chris |
Type: | Article |
Subjects: | FRASCATI::Social sciences::Economics and Business::Finance |
Issue Date: | Jul-2018 |
Source: | International Review of Financial Analysis |
Volume: | 58 |
First Page: | 179 |
Last Page: | 194 |
Abstract: | This study examines various features of leveraged public-to-private institutional buyouts in Europe that occurred between 1998 and 2016. We find significant excess returns of about 7.7% on the LBO announcement date. We also find evidence that LBOs harbored in countries with strong corporate governance mechanisms elicit greater wealth effects for shareholders of targets. Consistent with the free cash flow hypothesis, abundance of cash appears to be one of the driving forces of excess short-term returns. Looking at the characteristics of LBO targets, we show that mature companies with excess cash flows and less volatility seem to be candidates for LBO deals. |
URI: | https://doi.org/10.1016/j.irfa.2017.10.002 https://ruomo.lib.uom.gr/handle/7000/309 |
ISSN: | 1057-5219 |
Other Identifiers: | 10.1016/j.irfa.2017.10.002 |
Appears in Collections: | Department of Applied Informatics |
Files in This Item:
File | Description | Size | Format | |
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The Wealth Effects of public-to-private LBOs. Evidence from Europe. Final.pdf | 816,36 kB | Adobe PDF | View/Open |
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