The financial performance of reverse leveraged buyouts

• 成果类型: Article
• 署名作者: Holthausen, RW; Larcker, DF
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/0304-405X(96)00884-7
• 发表日期: 1996
• 页码: 293-332
• 关键词: reverse leveraged buyouts; capital structure; EQUITY OWNERSHIP; financial performance

摘要

We examine the accounting and market performance of reverse leveraged buyouts (i.e., firms making their first public offering after previously completing a leveraged buyout). On average, the accounting performance of these firms is significantly better than their industries at the time of the initial public offering(IPO) and for at least the following four years, though there is some evidence of a decline in performance. Cross-sectional variation in accounting performance subsequent to the IPO is related to changes in the equity ownership of both operating management and other insiders, and is unrelated to changes in leverage. Finally, there is no evidence of abnormal common stock performance after the reverse leveraged buyout.