Most large firms are not large, single station facilities… Large size is the result of joining a series of stations within a single administrative entity…The interfaces between stations could instead be mediated by market exchanges. 1991 Morgan Stanley.

We study the impact of 29 management buyouts (MBOs) announced during the years 1981-1989 on the value of the firms outstanding nonconvertible bonds. Using two methodologies-market-adjusted retums and mean-adjusted returns we provide evidence confirming the presence of significant bondholder...