Management Buyouts and Firm-Level Productivity: Evidence from a Panel of UK Manufacturing Firms

14 Pages Posted: 11 May 2003

See all articles by Kevin Amess

Kevin Amess

Nottingham University Business School

Abstract

This paper presents an empirical investigation of the productivity effects of UK management buyouts (MBOs) over the period 1986-1997. It is the first study to use an augmented production function approach in order to determine and quantify: the Hicks-neutral productivity, the marginal productivity of labour, and the marginal productivity of capital effects of MBOs. The main findings are consistent with MBOs providing incentive and control systems that lead to improved firm-level productivity in the post-buyout organisation via reduced agency costs, debt bonding, and monitoring by buyout specialists.

Suggested Citation

Amess, Kevin, Management Buyouts and Firm-Level Productivity: Evidence from a Panel of UK Manufacturing Firms. Scottish Journal of Political Economy, Vol. 49, pp. 304-317, 2002. Available at SSRN: https://ssrn.com/abstract=318749

Kevin Amess (Contact Author)

Nottingham University Business School ( email )

Jubilee Campus
Wollaton Road
Nottingham, NG8 1BB
United Kingdom

HOME PAGE: http://www.nottingham.ac.uk/business/lizka1.html

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