Efficiency and organizational structure: a study of reverse LBOs

Article Abstract:

This paper is a report on 72 firms which went public since 1983 but previously underwent a full or divisional LBO. Accounting measures of performance reveal significant improvements in profitability which resulted mainly from these firms' ability to reduce costs. Firms experience dramatic increases in leverage at the LBO, but the leverage ratios are gradually reduced. The evidence is consistent with the hypothesis 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. (Reprinted by permission of the publisher.)

Research, Analysis, Going public (Securities), Initial public offerings, Leveraged buyouts, Financial research

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Tax-induced trading of equity securities: evidence from the ADR market

Article Abstract:

The trading volume of a 1,043 dividend sample of American Depositary Receipts from 1988-95 is examined.

United States, Taxes, Dividends, Dividend Policy, Labor Distribution by Employer, Case studies, Taxation, Statistics, Securities, American depository receipts, American depositary receipts, Securities trading, Company dividends

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