Changes

LBO Lit Review (view source)

891 bytes added , 16:15, 21 June 2016

*FA/TA Financial assets (net)/Total Assets (net)

*TA/TAg Total Assets (net)/Total assets (gross)

Variables:

*Target-firm size (SIZE)

*Target-firm liquidity (LIQUIDITY)

*Asset sales subsequent to the lbo (ASSETSALE)

*Target-firm return on assets (ROA)

*Target-firm growth opportunities (GROWTH and MRKTBOOK)

*target-firm earnings variability (EARNINGVAR)

*free cash flow ratio (FREECASH)

*acquisition premium paid (PREMIUM)

*trend variable (TIMEDUM)

Dependent variables:

*PBANKL the percentage of the total buyout financing package that is represented by senior bank debt

*PDEBTSEC: the percentage of the total package that consists of issues of junior debt securities

*PPREFER: the percentage of the total package represented by issues of preferred stock

*PCOMMON: the percentage of the total that consists of common equity provided by the buyout group

*PCASH: the percentage of the total that comes from the use of the target firm's existing cash and marketable securities balances

==Innovation==

668

edits