TY - JOUR
T1 - Efficiency and Organizational Structure
T2 - A Study of Reverse LBOs
AU - MUSCARELLA, CHRIS J.
AU - VETSUYPENS, MICHAEL R.
PY - 1990/12
Y1 - 1990/12
N2 - This paper is a report on 72 firms which went public since 1983 but previously underwent a full or divisional LBO. Accounting measures of performance reveal significant improvements in profitability which resulted mainly from these firms' ability to reduce costs. Firms experience dramatic increases in leverage at the LBO, but the leverage ratios are gradually reduced. The evidence is consistent with the hypothesis that the change in the governance structure of these firms towards more concentrated residual claims created a new organizational structure which is more efficient than its predecessor. 1990 The American Finance Association
AB - This paper is a report on 72 firms which went public since 1983 but previously underwent a full or divisional LBO. Accounting measures of performance reveal significant improvements in profitability which resulted mainly from these firms' ability to reduce costs. Firms experience dramatic increases in leverage at the LBO, but the leverage ratios are gradually reduced. The evidence is consistent with the hypothesis that the change in the governance structure of these firms towards more concentrated residual claims created a new organizational structure which is more efficient than its predecessor. 1990 The American Finance Association
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U2 - 10.1111/j.1540-6261.1990.tb03720.x
DO - 10.1111/j.1540-6261.1990.tb03720.x
M3 - Article
AN - SCOPUS:84977702541
SN - 0022-1082
VL - 45
SP - 1389
EP - 1413
JO - The Journal of Finance
JF - The Journal of Finance
IS - 5
ER -