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LEVERAGED BUYOUTS AND SHAREHOLDER RETURNS
Author(s) -
Torabzadeh Khalil M.,
Bertin William J.
Publication year - 1987
Publication title -
journal of financial research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.319
H-Index - 49
eISSN - 1475-6803
pISSN - 0270-2592
DOI - 10.1111/j.1475-6803.1987.tb00504.x
Subject(s) - leveraged buyout , shareholder , business , stock (firearms) , monetary economics , accounting , finance , financial system , private equity , corporate governance , economics , mechanical engineering , engineering
This study examines the risk‐adjusted stock returns realized by shareholders of firms acquired through leveraged buyouts to assess the economic gains associated with this type of acquisition. Stockholders of firms acquired through leveraged buyouts realize significant positive abnormal returns as a result of the buyout announcement. The findings support the notion of value creation in leveraged buyouts.