Efficiency Gains in Unsuccessful Management Buyouts

Eli Ofek

Journal of Finance, 1994, vol. 49, issue 2, 637-54

Abstract: This article uses a sample of 120 unsuccessful management buyouts to test whether operational improvements following successful management buyouts are a result of organizational changes or private information. The findings are consistent with the organizational changes hypothesis. Firms with an unsuccessful management buyout had no increase in operating performance following the buyout attempt. In addition, the cumulative abnormal stock return from before the attempted buyout until two years after the attempt is insignificantly different from 0 percent. The author also finds that management turnover following an unsuccessful management buyout is significantly higher than normal. Copyright 1994 by American Finance Association.

Date: 1994
References: Add references at CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://links.jstor.org/sici?sici=0022-1082%2819940 ... O%3B2-P&origin=repec full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jfinan:v:49:y:1994:i:2:p:637-54

Ordering information: This journal article can be ordered from
http://www.afajof.org/membership/join.asp

Access Statistics for this article

More articles in Journal of Finance from American Finance Association Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().