Market reaction to private equity deal announcements

Date
2017-10
Advisor
Tanyeri, Ayşe Başak
Supervisor
Co-Advisor
Co-Supervisor
Instructor
Source Title
Print ISSN
Electronic ISSN
Publisher
Bilkent University
Volume
Issue
Pages
Language
English
Type
Thesis
Journal Title
Journal ISSN
Volume Title
Series
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.

Course
Other identifiers
Book Title
Keywords
Event Study, Leveraged Buyout, Private Equity
Citation
Published Version (Please cite this version)