The Performance of Reverse Leveraged Buyouts
Reverse leveraged buyouts (RLBOs) have received increased public scrutiny but attracted little systematic study. We collect a comprehensive sample of 526 RLBOs between 1981 and 2003 and examine the three-year and five-year stock performance of these offerings. RLBOs appear to perform as well as or better than other initial public offerings and the stock market as a whole, depending on the specification. Evidence exists of a deterioration of returns over time.
Finance and Financial Management | Portfolio and Security Analysis
Journal of Financial Economics
CAO, Xiaping Jerry and Lerner, Josh.
The Performance of Reverse Leveraged Buyouts. (2009). Journal of Financial Economics. 91, (2), 139-157. Research Collection Lee Kong Chian School Of Business.
Available at: http://ink.library.smu.edu.sg/lkcsb_research/1075