After The Mega-Buyout Era: Do Public-to-Private Transactions Still Outperform?
By Bryn Wilson Abstract This thesis contributes to existing knowledge of the private equity asset class by examining whether public-to-private leveraged buyouts outperform public peers before and after the mega-buyout era (2005 – 2007). This paper considers the impact of four groups of value drivers on both market- and peer-adjusted returns. These value drivers include […]
Leverage and Varying Metrics of Firm Performance
By Preston Jiateng Huang This paper sets out to examine the effect of leverage on company performance. Drawing on the methodology of key prior research, this study finds that leverage has a consistent negative effect on firm growth; by contrast, no such negative impact was found on return on equity. Importantly, such patterns hold throughout […]
Determinants of Franchise Value in the National Basketball Association
By Matthew Van Liedekerke Franchise values in the National Basketball Association (NBA) have more than tripled over the last five years, with the average franchise worth $1.36 billion. Using panel data on NBA franchises between 2009 and 2016, this paper finds that market, performance, star players, and brand are significant determinants of franchise value at […]
Deterring Ineffcient Gambling in Risk-Taking Agents
By Ryan Westphal This paper proposes a model describing the incentive issues faced by principals and agents when the agent has limited liability and is capable of undertaking unidentifiable, inefficient risky behavior. We propose a contract structure by which the principal deters risk by deferring payment to the agent until she reaches an absorbing steady-state […]
The Hidden Costs of Central Bank Borrowing
By Shane Hunt This paper explores a previously overlooked unintended consequence of a private bank accepting Central Bank loans as a lender of last resort. Applying the basic Markowitz Security Model, I explore the potential effect of a private bank accepting a Central Bank loan as a signal of increased risk of investment in that […]
A Further Exploration of Reverse Takeovers as an Alternative to Initial Public Offerings
By Matt LoSardo and Zhunliang Zhu In theory a reverse takeover (RTO) should be a viable alternative to initial public offerings (IPO) for private companies looking to access the public capital markets. Since the IPO process can be very timely and include significant costs, both direct and indirect, we analyze reverse takeovers as an alternative […]
