The evolution of capital structure and operating performance after leveraged buyouts: Evidence from US corporate tax returns

• 成果类型: Article
• 署名作者: Cohn, Jonathan B.; Mills, Lillian F.; Towery, Erin M.
• 署名单位: University of Texas System; University of Texas Austin
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2013.11.007
• 发表日期: 2014
• 页码: 469-494
• 关键词: LEVERAGED BUYOUTS; PRIVATE EQUITY; capital structure; corporate governance

摘要

This study uses corporate tax return data to examine the evolution of firms' financial structure and performance after leveraged buyouts (LBOs) for a comprehensive sample of 317 LBOs taking place between 1995 and 2007. We find little evidence of operating improvements subsequent to an LBO, although consistent with prior studies, we do observe operating improvements in the set of LBO firms that have public financial statements. We also find that firms do not reduce leverage after LBOs, even if they generate excess cash flow. Our results suggest that effecting a sustained change in capital structure is a conscious objective of the LBO structure. (C) 2013 Elsevier B.V. All rights reserved.