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http://dx.doi.org/10.5762/KAIS.2013.14.1.85

A Review on the Financial and Legal Characteristics of 'Leveraged Buyout(LBO)' in the Korean Capital Markets  

Kim, Hanjoon (Dept. of Business Administration, Hoseo University)
Publication Information
Journal of the Korea Academia-Industrial cooperation Society / v.14, no.1, 2013 , pp. 85-93 More about this Journal
Abstract
While relatively many researches have been performed on the legal issues of leverage buyout(LBO) in the Korean capital market, the on-going 'interdisciplinary studies' between the legal and the financial aspects of LBO financing structure seems to be relatively few so far. In this particular study, the concept and major financing structures on LBO have been discussed, by which domestic investors including institutional investors, may acquire in-depth knowledge on the issue given the dynamically changing circumstances surrounding the Korean domestic capital market. Moreover, legal analyses related to the conventional case studies on two types of LBO structures such as 'asset-backed LBO' and 'merger-related LBO', have been illustrated, coupled with the review of the previous literature on mergers & acquisitions(M&A) related to the financial aspects of LBO financing structure. From the director's perspective, who is employed by an acquired firm, legal issues in terms of 'fiduciary duty' and 'duty of loyalty' have been discussed, along with the logical scope of 'business judgement principle' in terms of modern finance theory.
Keywords
Business Judgement Principle; Financial Characteristics; Korean Capital Markets; LBO Financing Structure; Mergers & Acquisitions;
Citations & Related Records
Times Cited By KSCI : 2  (Citation Analysis)
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