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Dodging Bullets : Changing U.S. Corporate Capital Structure in the 1980s and 1990s.
- Format:
- Book
- Author/Creator:
- McCauley, Robert N. (Robert Neil), 1953- author.
- Language:
- English
- Subjects (All):
- Leveraged buyouts--United States--History--20th century.
- Leveraged buyouts.
- Consolidation and merger of corporations--United States--History--20th century.
- Consolidation and merger of corporations.
- Corporations--United States--Finance--History--20th century.
- Corporations.
- Finance.
- History.
- United States.
- Physical Description:
- 1 online resource (417 pages)
- Place of Publication:
- Cambridge : MIT Press, 2015.
- System Details:
- text file
- Summary:
- An entertaining summary of the broad reshaping of U.S. corporate finance in the last decade and a half.The late 1980s saw a huge wave of corporate leveraging. The U.S. financial landscape was dominated by a series of high-stakes leveraged buyouts as firms replaced their equity with new fixed debt obligations. Cash-financed acquisitions and defensive share repurchases also decapitalized corporations. This trend culminated in the sensational debt-financed bidding for RJR-Nabisco, the largest leveraged buyout of all time, before dramatically reversing itself in the early 1990s with a rapid return to equity.This entertaining summary of the broad reshaping of U.S. corporate finance in the last decade and a half looks at three major issues: why corporations leveraged up in the first place, why and how the leverage wave came to an end, and what policy lessons are to be drawn.Using the Minsky-Kindleberger model as a framework, the authors interpret the rise and fall of leveraging as a financial market mania. In the course of chronicling the return to equity in the 1990s, they address a number of important corporate finance questions: How important was the return to equity in relieving corporations' debt burdens? How did the return to equity affect the ability of young high-tech firms to finance themselves without selling out to foreign firms?
- Notes:
- OCLC-licensed vendor bibliographic record.
- ISBN:
- 9780262279383
- 026227938X
- OCLC:
- 923250945
- Access Restriction:
- Restricted for use by site license.
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