search query: @indexterm Management buy-outs / total: 202
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| Author: | Easterwood, J. |
| Title: | Controlling the conflict of interest in management buyouts |
| Journal: | Review of Economics and Statistics
1994 : AUG, VOL. 76:3, p. 512-522 |
| Index terms: | MANAGEMENT BUY-OUTS CONTROL CONFLICT |
| Language: | eng |
| Abstract: | A controversial aspect of the management buyouts that were popular throughout the 1980s is the potential for a conflict of interest to arise when a manager bids to acquire the firm he manages. This study examines 184 managerial buyouts and reports three findings. First, returns to the pre-buyout shareholders are greater when managers must bid against outside acquirers. Second, bid revisions in the face of competition exceed revisions due to shareholder litigation and negotiation with boards. Third, the incidence of competition is negatively related to the pre-buyout share holdings of managers. |
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