Graduation Year
2019
Date of Submission
12-2018
Document Type
Open Access Senior Thesis
Degree Name
Bachelor of Arts
Department
Economics
Reader 1
George Batta
Terms of Use & License Information
Rights Information
© 2018 Yutao Jiang
OCLC Record Number
1089197255
Abstract
This paper utilizes a hazard model to predict the probability of leveraged buyout transactions for public firms. Rather than testing specific hypotheses, this paper incorporates all plausible predictors identified in existing literature to better delineate the effects of different characteristics. Largely confirming past results, I find that LBO transactions are more likely to occur for companies with more stable cash flows, less market visibility, lower market valuation, lower ownership concentration and lower costs of financial distress. By including LBO transactions from 1980 to September 2018, I find preliminary evidence that since the financial crisis of 2008 – 2009, private equity firms have modified their selection criteria when sourcing LBO deal targets.
Recommended Citation
Jiang, Yutao (James), "Leveraged Buyouts: The Predictive Power of Target Firm Characteristics" (2019). CMC Senior Theses. 2059.
https://scholarship.claremont.edu/cmc_theses/2059
