Artigo Acesso aberto Revisado por pares

The financial performance of reverse leveraged buyouts

1996; Elsevier BV; Volume: 42; Issue: 3 Linguagem: Inglês

10.1016/0304-405x(96)00884-7

ISSN

1879-2774

Autores

Robert W. Holthausen, David F. Larcker,

Tópico(s)

Auditing, Earnings Management, Governance

Resumo

We examine the accounting and market performance of reverse leveraged buyouts (i.e., firms making their first public offering after previously completing a leveraged buyout). On average, the accounting performance of these firms is significantly better than their industries at the time of the initial public offering (IPO) and for at least the following four years, though there is some evidence of a decline in performance. Cross-sectional variation in accounting performance subsequent to the IPO is related to changes in the equity ownership of both operating management and other insiders, and is unrelated to changes in leverage. Finally, there is no evidence of abnormal common stock performance after the reverse leveraged buyout.

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