Banks and high leverage debt
Agency problems in public firms: evidence from corporate jets in leveraged buyouts
This paper uses rich, new data to examine the fleets of corporate jets operated by both publicly traded and privately held firms. In the cross-section, firms owned by private equity funds average jet fleets at least 40 percent smaller than observably similar publicly-traded firms. Similar fleet reductions are observed within firms that go private in leveraged buyouts. I discuss assumptions under which comparisons across and within firms provide estimates of lower and upper bounds on the average treatment effect of taking a firm from public to private in a leveraged buyout. Both censored and ...
Bank lending to LBO's: risks and supervisory response
An examination of the risks associated with leveraged buyouts and a discussion of the current response of federal bank regulators to the increased participation of banks and bank holding companies in funding LBOs, stressing the need for appropriate internal controls.
LBOs and conflict of interest
A discussion of leveraged buyouts and their dramatic impact on traditional corporate structure and relationships among stockholders, bondholders, and employees.
U.S. corporate leverage: developments in 1987 and 1988
The causes and consequences of leveraged buyouts
The real and imaginary risks of leveraged buyout lending