The impact of LBOs on investment policies and operations of acquired French firms
Keyword(s):
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.
Keyword(s):
2018 ◽
Vol 10
(9)
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pp. 136
2015 ◽
Vol 1
(1)
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pp. 286
2017 ◽
Vol 17
(4)
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pp. 1-10
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Keyword(s):
2018 ◽
Vol 15
(2)
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pp. 104-115
Keyword(s):
2021 ◽
Vol 2
(1)
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pp. 40-46