Abstract

http://ssrn.com/abstract=1086775
 
 

Citations (4)



 


 



Creditor Rights and LBOs


Jerry Cao


Singapore Management University - Lee Kong Chian School of Business

Douglas J. Cumming


York University - Schulich School of Business

Meijun Qian


National University of Singapore

Xiaoming Wang


affiliation not provided to SSRN

February 15, 2010

5th Annual Conference on Empirical Legal Studies Paper

Abstract:     
This paper examines the relation between legal conditions and leveraged buyouts (LBOs) in 49 countries. The data indicate that sophisticated PE fund managers carrying out large international LBOs can only partially mitigate costs associated with inefficient legal protections. LBOs are more active in countries with strong creditor rights. Club deals are more likely to occur in countries with weak creditor rights. Cross-border LBO investment is more common from strong creditor rights countries to weak creditor rights countries. Premiums offered to shareholders are on average negatively correlated with creditor rights for both domestic and cross-border LBOs.

Number of Pages in PDF File: 39

Keywords: LBOs, Creditor rights, Private Equity, Cross border, Club deal, Law and Finance

JEL Classification: G24, G32

working papers series





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Date posted: January 23, 2008 ; Last revised: October 17, 2014

Suggested Citation

Cao, Jerry and Cumming, Douglas J. and Qian, Meijun and Wang, Xiaoming, Creditor Rights and LBOs (February 15, 2010). ; 5th Annual Conference on Empirical Legal Studies Paper. Available at SSRN: http://ssrn.com/abstract=1086775 or http://dx.doi.org/10.2139/ssrn.1086775

Contact Information

Jerry Cao (Contact Author)
Singapore Management University - Lee Kong Chian School of Business ( email )
50 Stamford Road
#04-01
Singapore, 178899
Singapore
65-6828-0273 (Phone)
65-6828-0427 (Fax)

Douglas J. Cumming
York University - Schulich School of Business ( email )
4700 Keele Street
Toronto, Ontario M3J 1P3
Canada
HOME PAGE: http://www.venturecapitalprivateequitycontracting.com/
Meijun Qian
National University of Singapore ( email )
1 Business Link
Singapore, 117592
Singapore
Xiaoming Wang
affiliation not provided to SSRN ( email )
Feedback to SSRN


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