The impact of LBOs on investment policies and operations of acquired French firms | Zendy

Philippe Desbrières | Zendy; Alain Schatt | Zendy

AI Assistant Blog Pricing

Home ZAIA Blog

Open Access

The impact of LBOs on investment policies and operations of acquired French firms

Author(s) -

Philippe Desbrières,

Alain Schatt

Publication year - 2003

Publication title -

corporate ownership and control

Language(s) - English

Resource type - Journals

eISSN - 1810-0368

pISSN - 1727-9232

DOI - 10.22495/cocv1i2p4

Subject(s) - investment (military) , business , capital (architecture) , working capital , finance , capital investment , return on investment , monetary economics , economics , labour economics , microeconomics , production (economics) , archaeology , politics , political science , law , history

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.

The content you want is available to Zendy users.

Already have an account? Click here to sign in.

Having issues? You can contact us here

Accelerating Research