We offer additional insights regarding the motivation for dual class recapitalizations and their potential impact on managerial entrenchment. We test the general hypothesis that the loss of shareholder monitoring associated with dual class recapitalizations is replaced by alternative monitoring...

We investigate the tax incentives for leveraged buyouts by measuring the change in taxes paid by a firm due to a buyout. Estimates are made of the change in taxes paid by 23 of the largest leveraged buyouts in 1988, 1989 and 1990 under three different tax structures and use a pre-TRA '86 tax...

The theory of financial leasing views financial leases as substitutes for secured debt. Empirical studies have reported a high positive correlation between lease ratios and debt ratios and that lessors earn higher rates of return than lenders. These results contradict traditional leasing theory....