Dodging Bullets : Changing U.S. Corporate Capital Structure in the 1980s and 1990s Hardback
by Robert N. McCauley, Judith S. Ruud, Frank Iacono
Part of the The MIT Press series
Hardback
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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?
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Available to Order - This title is available to order, with delivery expected within 2 weeks
- Format:Hardback
- Pages:427 pages
- Publisher:MIT Press Ltd
- Publication Date:22/11/1999
- Category:
- ISBN:9780262133517
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Information
-
Available to Order - This title is available to order, with delivery expected within 2 weeks
- Format:Hardback
- Pages:427 pages
- Publisher:MIT Press Ltd
- Publication Date:22/11/1999
- Category:
- ISBN:9780262133517