Dodging Bullets : Changing U.S. Corporate Capital Structure in the 1980s and 1990s

• Record Nr.: UNINA9910778888303321
• Autore: McCauley Robert N
• Pubbl/distr/stampa: Cambridge, : MIT Press, 2015
• ISBN: 0-262-26366-1; 0-262-27938-X; 0-585-17623-X
• Descrizione fisica: 1 online resource (417 p.)
• Altri autori (Persone): RuddJudith S; IaconoFrank
• Disciplina: 338.80973
• Soggetti: Leveraged buyouts - United States - History - 20th century; Consolidation and merger of corporations - United States - History - 20th century; Corporations - United States - Finance - History - 20th century
• Lingua di pubblicazione: Inglese
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Note generali: Description based upon print version of record.
• Nota di bibliografia: Includes bibliographical references (p. [349]-392) and index.
• Nota di contenuto: ""Dodging Bullets""; ""Contents""; ""About the Authors""; ""Preface""; ""Acknowledgments""; ""Introduction""; ""The End of the 1980's""; ""Why the 1980's Stopped: Leveraging as a Mania""; ""Why the 1980's Stopped: Did Judges, Lawmakers, and Regulators Kill the Leveraging Business?""; ""RJR-Nabisco: A Case Study""; ""The 1990's""; ""The Legacy of Debt and Corporate Refinancing in the 1990's""; ""Relieving the Burden of Interest on Cash Flow""; ""The Equity Infusion Reverse LBO's""; ""Cheap Equity Capital for Young Firms""; ""Mergers and Acquisitions in the 1990's""; ""Lessons""; ""Policy and Asset Inflation""""Conclusion""; ""Notes""; ""Index""
• Sommario/riassunto: 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?