Changes

@article{roden1995corporate,

abstract={Attempts We analyze the composition of the financing packages used in a large sample of leveraged buyout transactions in order to explain why observed financing choices were made by individual firmstest a set of hypotheses developed in the prior literature about the determinants of corporate capital structure decisions. Identifies relationships between We focus in particular on the characteristics role of the target firms agency costs, bankruptcy risks, and tax considerations. We find evidence that all three have an impact, both on the types degree of financings that were leverage employed in their acquistionthe transactions and on the attributes of the borrowings undertaken. Evidence that LBO The impacts are manifest in systematic relationships between the proportion and type of debt in the buyout financing decisions appear systematically to be affected by package and the target firm's earnings rate, earnings variability, growth prospects, the level and variability of return on its assets, its pre-buyout tax and liquidity position, and by tax considerations and post-buyout restructuring plans.}