DISSERTATION
Presented in Partial Ful?llment of the Requirements for the Degree Doctor of philosophy in the fine-tune School of the Ohio State University
By Yingdi Wang, M.S. Graduate Program in Business Administration
The Ohio State University 2011
Dissertation committal: Prof. Michael S. Weisbach, Advisor Prof. Bernadette A. Minton Prof. Berk A. Sensoy
c Copyright by Yingdi Wang 2011
ABSTRACT
Many precedent studies of leveraged buy bring outs (LBOs) argue in favor of buyouts, due to a organizational structure that provides tax shields and mitigates agency problems. However, the existing theories do non explain some of the new LBO phenomena. Therefore, the objective of this dissertation is to collapse to the understanding of new developments in LBOs. Speci?cally, I empirically hear two types of unconventional but problematic LBOs. The ?rst chapter focuses on standby buyouts. A secondary buyout is a leveraged buyout where the unavowed equity sponsor, who had previously taken control of a orient through an LBO, sells the stern ?rm to another private equity ?rm or to a ?nancial sponsor. depraved to the general perception of LBOs, secondary buyouts strike become more and more popular.
As a percentage of all buyouts, secondary buyouts have grown from 13% in the 1980s to 35% in the last ?ve years. In this chapter, I ?nd that, comp bed to ?rst-time LBOs, secondary buyouts ar priced at a premium that cannot be explained by the rudiments of the target ?rms. However, these deals do not appear to be carried out in the best interest of the investors. Although I do not ?nd evidence of collusion on the part of private equity ?rms, evidence supporting the e?ciency gains explanation is mixed, since the target ?rms show an increase in pro?ts but a deterioration in pro?tability after the buyout. Overall, I ?nd evidence most ii
consistent with the notion that secondary buyouts are motivated by conditions in the...If you want to get a full essay, order it on our website: Ordercustompaper.com
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