search query: @author Vetsuypens, M. R. / total: 4
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| Author: | Muscarella, C. J. Vetsuypens, M. R. |
| Title: | Efficiency and organizational structure: a study of reverse LBOs |
| Journal: | Journal of Finance
1990 : DEC, VOL. 45:5, p. 1389-1413 |
| Index terms: | ORGANIZATIONAL STRUCTURE MANAGEMENT BUY-OUTS PROFITABILITY FINANCIAL ACCOUNTING PERFORMANCE MEASUREMENT |
| Language: | eng |
| Abstract: | A report is given on 72 firms which went public since 1983 but previously underwent a full or divisional leveraged buyout (LBO). Accounting measures of performance reveal significant improvements in profitability which resulted mainly from ability to reduce costs. Firms experience great increases in leverage at the LBO, but the leverage ratios are gradually reduced. The evidence suggests that the change in the governance structure of these firms towards more concentrated residual claims created a new organizational structure which is more efficient than its predecessor. |
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