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

Text

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

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?OCLC-licensed vendor bibliographic record.

Availability

No copy data

Detail Information
Series Title
-
Call Number
-
Publisher
Cambridge, Massachusetts : The MIT Press.,
Collation
1 online resource (417 pages)
Language
English
ISBN/ISSN
9780262279383
Classification
NONE
Content Type
text
Media Type
computer
Carrier Type
online resource
Edition
-
Subject(s)
Corporations
Leveraged buyouts
Consolidation and merger of corporations
Specific Detail Info
-
Statement of Responsibility
Other Information
Cataloger
Yora
Source
https://direct.mit.edu/books/monograph/2649/Dodging-BulletsChanging-U-S-Corporate-Capital
Validator
-
Digital Object Identifier (DOI)
https://doi.org/10.7551/mitpress/2476.001.0001
Journal Volume
-
Journal Issue
-
Subtitle
-
Parallel Title
-
Other version/related

No other version available

File Attachment
Comments
You must be logged in to post a comment