Market reaction to private equity deal announcements
Author(s)
Advisor
Tanyeri, Ayşe BaşakDate
2017-10Publisher
Bilkent University
Language
English
Type
ThesisItem Usage Stats
344
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Abstract
This thesis investigates whether and how target shareholders benefit in
leveraged buyout deals in which the target is a public company and the acquirer
is a private equity firm. We conduct an event study and run cross sectional
regressions of cumulative abnormal returns (CARs) on various firm
characteristics. Target CARs average 21.17% in the 3-day event window
surrounding the announcement of leveraged buyout transactions. Regression
results indicate that CARs decrease with target firm size.