The Impact of Lbos on Investment Policies and Operations of Acquired French Firms

Philippe Desbrières and Alain Schatt

Working Papers CREGO from Université de Bourgogne - CREGO EA7317 Centre de recherches en gestion des organisations

Abstract: This paper evaluates the extent that French LBO targets' investment policy and operations can account for their overperformance discrepancy. Our empirical study has been carried out on 132 French LBOs between 1989 and 1994. The results show that the abnormal plunge in economic return cannot be explained by overinvestments or by inefficient working capital management. Nevertheless, abnormal increases in wages, supplies and/or sales price reductions appear to be prominent.

Keywords: Leveraged buy-out; performance; investment policy; operations (search for similar items in EconPapers)
JEL-codes: G31 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2002-10
Note: version française publiée dans Finance Contrôle Stratégie, vol.5, n°4, décembre 2002.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published in Finance Contrôle Stratégie, vol.5, n°4, décembre 2002.

Downloads: (external link)
https://repec-crego.u-bourgogne.fr/images/stories/wp/1021002.pdf (application/pdf)

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:dij:wpfarg:1021002

Ordering information: This working paper can be ordered from
Angèle Renaud, CREGO, 2 Bd Gabriel, BP 26611, 21066 Dijon Cedex, France

Access Statistics for this paper

More papers in Working Papers CREGO from Université de Bourgogne - CREGO EA7317 Centre de recherches en gestion des organisations 2 Bd Gabriel, BP 26611, 21066 Dijon Cedex, France.
Bibliographic data for series maintained by Angèle RENAUD ().