search query: @author Kaplan, S. / total: 12
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| Author: | Kaplan, S. |
| Title: | The effects of management buyouts on operating performance and value |
| Journal: | Journal of Financial Economics
1989 : OCT, VOL. 24:2, p. 217-254 |
| Index terms: | MANAGEMENT BUY-OUTS CASH FLOW PUBLIC CORPORATIONS BUSINESS INFORMATION SHAREHOLDERS INCENTIVES |
| Language: | eng |
| Abstract: | Evidence is presented on changes in operating results for a sample of 76 large management buyouts of public companies completed between 1980 and 1986. In the three years after the buyout, these companies experience increases in operating income, decreases in capital expenditures, and increases in net cash flow. The mean and median increases in market value are 96 percent and 77 percent from two month before the buyout announcement to the post-buyout sale. The evidence suggests the operating changes are due to improved incentives rather than layoffs or managerial exploitation of shareholders through inside information. |
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