How do leveraged buyouts affect industry peers' performance: evidence from Europe
- This paper analyzes the impact of leveraged buyouts (LBOs) on the profitability of target firms' industry peers in Europe. To address the endogeneity of LBO activity, I employ a control function approach, using the European Takeover Directive as an instrumental variable. The results indicate that peers improve their profitability following LBOs, driven by improved asset utilization and enhanced cost efficiency. Unlike the findings in the US-based literature, my analysis reveals that positive future industry developments also contribute to the overall effect. These findings suggest that the impact of LBOs on industry peers varies to some extent in the European context.
| Author: | Manuel C. KathanORCiDGND |
|---|---|
| URN: | urn:nbn:de:bvb:384-opus4-1244152 |
| Frontdoor URL | https://opus.bibliothek.uni-augsburg.de/opus4/124415 |
| ISSN: | 1058-3300OPAC |
| ISSN: | 1873-5924OPAC |
| Parent Title (English): | Review of Financial Economics |
| Publisher: | Wiley |
| Place of publication: | Weinheim |
| Type: | Article |
| Language: | English |
| Year of first Publication: | 2025 |
| Publishing Institution: | Universität Augsburg |
| Release Date: | 2025/08/13 |
| Volume: | 43 |
| Issue: | 4 |
| First Page: | 519 |
| Last Page: | 547 |
| DOI: | https://doi.org/10.1002/rfe.70011 |
| Institutes: | Wirtschaftswissenschaftliche Fakultät |
| Wirtschaftswissenschaftliche Fakultät / Institut für Betriebswirtschaftslehre | |
| Wirtschaftswissenschaftliche Fakultät / Institut für Betriebswirtschaftslehre / Professur für Finanzwirtschaft mit dem Schwerpunkt Climate Finance | |
| Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| Licence (German): |  CC-BY 4.0: Creative Commons: Namensnennung |
