Cross-Border LBOs

41 Pages Posted: 27 Aug 2014

See all articles by Jerry Cao

Jerry Cao

Independent

Douglas J. Cumming

Florida Atlantic University

Meijun Qian

Australian National University (ANU) - College of Business and Economics

Xiaoming Wang

Shanghai University of Finance and Economics

Date Written: August 16, 2014

Abstract

We examine cross-border private equity (PE) sponsored leveraged buyout (LBO) transactions in 43 countries in relation to creditor rights and other legal and institutional variables. Cross-border LBO investment is more common from strong creditor rights countries to weak creditor rights countries. Club deals are less common in countries with stronger creditor rights, and less common in cross-border LBOs. Premiums are lower in countries with stronger creditor rights, and among cross-border deals.

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

JEL Classification: G24, G32

Suggested Citation

Cao, Jerry and Cumming, Douglas J. and Qian, Meijun and Wang, Xiaoming, Cross-Border LBOs (August 16, 2014). Journal of Banking and Finance, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2487169

Jerry Cao

Independent

No Address Available

Douglas J. Cumming (Contact Author)

Florida Atlantic University ( email )

777 Glades Rd
Boca Raton, FL 33431
United States

HOME PAGE: http://booksite.elsevier.com/9780124095373/

Meijun Qian

Australian National University (ANU) - College of Business and Economics ( email )

Canberra
Australia

Xiaoming Wang

Shanghai University of Finance and Economics ( email )

777 Guoding Road
Shanghai, AK Shanghai 200433
China

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