Title Dodging bullets : changing U.S. corporate capital structure in the 1980s and 1990s / Robert N. McCauley, Judith S. Ruud, and Frank Iacono

Published Cambridge Mass. : MIT Press, ©1999

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Description 1 online resource (x, 415 pages) : illustrations Contents Dodging Bullets -- Contents -- About the Authors -- Preface -- Acknowledgments -- Introduction -- The End of the 1980s -- Why the 1980s Stopped: Leveraging as a Mania -- Why the 1980s Stopped: Did Judges, Lawmakers, and Regulators Kill the Leveraging Business? -- RJR-Nabisco: A Case Study -- The 1990s -- The Legacy of Debt and Corporate Refinancing in the 1990s -- Relieving the Burden of Interest on Cash Flow -- The Equity Infusion Reverse LBOs -- Cheap Equity Capital for Young Firms -- Mergers and Acquisitions in the 1990s -- Lessons Policy and Asset InflationConclusion -- Notes -- Index Summary Annotation 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? Bibliography Includes bibliographical references (pages 349-392) and index Notes Print version record Subject Leveraged buyouts -- United States -- History -- 20th century Consolidation and merger of corporations -- United States -- History -- 20th century Corporations -- United States -- Finance -- History -- 20th century BUSINESS & ECONOMICS -- Industries -- General. Consolidation and merger of corporations Corporations -- Finance Leveraged buyouts United States Genre/Form History Form Electronic book Author Ruud, Judith S. Iacono, Frank. ISBN 058517623X 9780585176239 9780262133517 0262133512

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