In this paper, we study to what extent French LBOs investment policy and operations can explain their overperformance discrepancy. Our empirical study has been carried out on 132 French LBOs between 1989 and 1994. The results show that the abnormal falling of their economic return cannot be...

[eng] Many systems of compensation and incentives exist in France. Their aim is to distribute to the managers and other employees part of the profits or productivity they provide to the firm. Some of them are stocks or stock-options that give property rights on the company.. This article...