Changes

This academic paper investigates the recent trend of leveraged buyouts (LBO) in the US financial market and assesses its impacts their impact on innovative activities within firms that undergo LBOs. To do this, we match firms that undergo LBOs with similar firms that do not undergo an LBO using a dynamic hazard rate model for LBOs. Using these matched firms as synthetic controls, we perform a difference in difference analysis to compare the trajectory of patenting activity of LBO firms and non-LBO firms.