Publication Type

Working Paper

Publication Date

3-2008

Abstract

This paper examines the impact of investor protection on the value creation of LBOs. We find that target shareholders’ wealth gain is higher in countries with better investor protection. The impact of investor protection on takeover premium is larger for LBO than non-LBO transactions. We also find evidence suggesting that club LBOs are not priced lower than non-club deals after accounting for endogeneity problem. These results suggest that investor protection law may act as an important safeguard for minority shareholders in LBO transactions.

Keywords

Private Equity, Leveraged Buyouts, Premium, M&A

Discipline

Corporate Finance | Finance and Financial Management

Research Areas

Finance

First Page

1

Last Page

37

Identifier

10.2139/ssrn.1100059

Publisher

SSRN

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Additional URL

http://doi.org/10.2139/ssrn.1100059

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