Borrow Cheap, Buy High? The Determinants of Leverage and Pricing in Buyouts

Axelson, Ulf; Jenkinson, Tim; Strömberg, Per; S. Weisbach, Michael

doi:10.1111/jofi.12082

Public

Borrow Cheap, Buy High? The Determinants of Leverage and Pricing in Buyouts

Published in The Journal of Finance • Jul 27, 2013

Authors:

Ulf Axelson

Tim Jenkinson

Per Strömberg

Abstract

ABSTRACT Private equity funds pay particular attention to capital structure when executing leveraged buyouts, creating an interesting setting for examining capital structure theories. Using a large, international sample of buyouts from 1980 to 2008, we find that buyout leverage is unrelated to the c...

Subject

Leveraged buyout

Leverage (statistics)

Capital structure

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