Agency problems in public firms

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Reference no: EM13917078 , Length: 900 words

Title of the article that you are to read: "Agency Problems in Public Firms: Evidence from Corporate Jets in Leveraged Buyouts" by Jesse Edgerton.Published in the Journal of Finance, December 2012.  You should be able to download the article (at no charge) from an on-campus 
computer. Alternatively, the article is available at the GMU library.

Assignment: Respond to the following issues (total write-up not to exceed 3 pages, double-space, 12 point font).

What is a private equity firm?

What is an LBO?

In general (i.e. not specific to the Journal of Finance article), what is the agency problem between stockholders and managers?

Describe the data used by the researcher in the analysis.Summarize the main findings of the paper (you do not need to read the theoretical model section of the paper.  In addition, you do not need to read the material contained in the paper's appendix.

Reference no: EM13917078

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