This article translates the research conducted by William Long and David Ravenscraft concerning the impact of leveraged buyouts (LBOs) on research and development (R&D) expenditures and performance. The author examines debt levels associated with LBOs and reductions in R&D spending as well as the importance of reductions in R&D. The researchers believed that LBOs would be associated with reductions in R&D, which they did find; however, their findings indicated that these reductions may not have been significant in all instances.
Copyright © 1994 Academy of Management. This article first appeared in The Academy of Management Executive 8, no. 2 (May 1994), 83-84.
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Harrison, Jeffrey S. "LBOs Slash R&D: So What?" The Academy of Management Executive 8, no. 2 (1994): 83-84. https://doi.org/10.5465/ame.1994.9503101113.