| Article ID: | iaor201522914 |
| Volume: | 10 |
| Issue: | 4 |
| Start Page Number: | 313 |
| End Page Number: | 319 |
| Publication Date: | Dec 1987 |
| Journal: | Journal of Financial Research |
| Authors: | Torabzadeh Khalil M, Bertin William J |
| Keywords: | investment, management |
This study examines the risk‐adjusted stock returns realized by shareholders of firms acquired through leveraged buyouts to assess the economic gains associated with this type of acquisition. Stockholders of firms acquired through leveraged buyouts realize significant positive abnormal returns as a result of the buyout announcement. The findings support the notion of value creation in leveraged buyouts.