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Economic Commentary

LBOs and Conflicts of Interest

Leveraged-buyouts (LBOs) have had a major impact on our financial system, and have particularly affected traditional corporate relationships between stockholders, bondholders, and employees. It is unclear if LBOs improve economic performance. The growth of LBOs, however, has sparked an evolutionary response that is restructuring the corporation as an institution.

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This paper and its data are subject to revision; please visit for updates.

Suggested Citation

Osterberg, William P. 1989. “LBOs and Conflicts of Interest.” Federal Reserve Bank of Cleveland, Economic Commentary 8/15/1989.

This work by Federal Reserve Bank of Cleveland is licensed under Creative Commons Attribution-NonCommercial 4.0 International