An Analysis of Management Buy-out Failure in Recession

Huo, Huan (2009) An Analysis of Management Buy-out Failure in Recession. [Dissertation (University of Nottingham only)] (Unpublished)

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The UK buy-out market went down in the last quarter of 2008 with a significant reduction of deal numbers and deal values. Besides, the exit market has been difficult through 2008 with no buy-out IPOs but large proportion of receiverships. Therefore buy-out failure attracts interest and it would be worthwhile to identify factors that leads to or predicts a failure, particularly in a recessional condition.

This study is built on previous studies of Wright et al. (1996) and Wilson et al. (2009) which estimated buy-out failure in recessions of 1990s and 2008 respectively. A logit model is applied in the paper but did not show significant results. Nevertheless, the significant and positive sign of interest cover indicates the impact of leverage and profitability on the probability of failure.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 03 Feb 2010 14:03
Last Modified: 15 Sep 2016 21:30

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