search query: @indexterm Management buy-outs / total: 202
reference: 113 / 202
| Author: | Marais, L. Schipper, K. Smith, A. |
| Title: | Wealth effects of going private for senior securities |
| Journal: | Journal of Financial Economics
1989 : JUN, VOL. 23:1, p. 155-191 |
| Index terms: | SECURITIES MANAGEMENT BUY-OUTS DEBT FINANCING PRICES RISK |
| Language: | eng |
| Abstract: | Effects of going-private buyout proposals between 1974-1985 on the value and default risk of convertible and non-convertible debt and preferred securities investigated. Positive average price reactions are documented for public convertible securities and non-convertible preferred stock. Most non-convertible debt securities remain outstanding without renegotiation after buyouts, and minimal average price reactions are documented for public non-convertible debt. Following successful buyouts the proportion of debt in the capital structure is more than three times greater on the average, and most rated debt securities experience downgradings in Moody's rating. |
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