A theory of LBO activity based on repeated debt-equity conflicts
We develop a theory of leveraged buyout (LBO) activity based on two elements: the ability of private equity-owned firms to borrow against their sponsors' reputation with creditors and externalities in sponsors' reputations due to competition and club formation. In equilibrium, the two sour...
| Main Authors: | , |
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| Other Authors: | , |
| Format: | Article |
| Language: | English |
| Published: |
Elsevier BV,
2020-09-01T00:19:34Z.
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| Subjects: | |
| Online Access: | Get fulltext |