search query: @indexterm Management buy-outs / total: 202
reference: 128 / 202
| Author: | Lehn, K. Poulsen, A. |
| Title: | Free cash flow and stockholder gains in going private transactions. |
| Journal: | Journal of Finance
1989 : JUL, VOL. 44:3, p. 771-787 |
| Index terms: | PRIVATE COMPANIES MANAGEMENT BUY-OUTS COMPANY OWNERSHIP SHAREHOLDERS USA |
| Language: | eng |
| Abstract: | The source of stockholder gains in going private transactions is investigated. It is found that a major source of these gains is the mitigation of agency problems associated with free cash flow. Using a sample of 263 going private transactions, the results indicate a significant relationship between undistributed cash flow and a firm's decision to go private. It is found that premiums paid to stockholders are significantly related to undistributed cash flow. These results are especially strong for firms whose managers owned relatively little equity before the going private transaction. |
SCIMA