Journal of Financial Economics Vol. 27 No. 1 1990
The effects of leveraged buyouts on productivity and related aspects of firm behavior
open access
Abstract
We investigate the effects of leveraged buyouts on total factor productivity (TFP) and related variables using a longitudinal database including over 12,000 manufacturing plants. LBOs (particularly MBOs) that occured during 1983–1986 had a strong positive effect on TFP in the first three post-buyout years: plant productivity increased from 2.0% above industry mean in the three pre-buyout years to 8.3% above industry mean in the three post-buyout years. However, 1981 and 1982 buyouts had no significant productivity effect. The employment and compensation of white-collar workers decline following buyouts, but those of blue-collar workers are unchanged.
- DOI
- 10.1016/0304-405x(90)90025-u
- Volume
- 27
- Issue
- 1
- Pages
- 165-194
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref