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.
Download full text files
Early view
Statistics
Print On Demand
Additional Services
| Author: | Manuel C. KathanORCiDGND |
|---|---|
| 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 |
| Type: | Article |
| Language: | English |
| Year of first Publication: | 2025 |
| Publishing Institution: | Universität Augsburg |
| Release Date: | 2025/08/13 |
| 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 |
| Latest Publications (not yet published in print): | Aktuelle Publikationen (noch nicht gedruckt erschienen) |
| Licence (German): |  CC-BY 4.0: Creative Commons: Namensnennung (mit Print on Demand) |
