Through Aristotelian Lenses, Potential Reforms of the Leveraged Buyout Model

Business and Professional Ethics Journal 42 (3):401-435 (2023)
  Copy   BIBTEX

Abstract

The overall objectives of this article are to help the reader see and understand through Aristotelian lenses: (1) positive and negative aspects of the Leveraged Buyout (LBO) business model; and, (2) how LBO practices can be reformed so as to retain positives and reduce negatives. Aristotelian lenses considered are: wealth acquisition through wealth expansion, wealth creation, and wealth transfers; distributive and corrective justice; and, a dialectic analytic process of retaining positives, reducing negatives, and reforming. Key net positive wealth expansion aspects of the model are discussed with respect to: profitability for the owners, managers, and investors of LBO firms; potential productivity improvements on the cost and revenue sides; and, potentially greater credit availability. Negative wealth transfer and destruction aspects with respect to: a relatively high rate of bankruptcies in some countries and in economic downturns; LBO firm gains without responsibility for losses; wealth transfers from employees, creditors, ordinary vs “carried interest” taxpayers; and, damaged wealth expansion and creation capabilities of acquired organizations are discussed. Potential reforms that could reduce negatives, retain positives, and reform the model are discussed.

Links

PhilArchive



    Upload a copy of this work     Papers currently archived: 91,271

External links

Setup an account with your affiliations in order to access resources via your University's proxy server

Through your library

Similar books and articles

Corporate governance reforms in developing countries.Darryl Reed - 2002 - Journal of Business Ethics 37 (3):223 - 247.
Reintegrating Ethics and Institutional Theories.Richard P. Nielsen & Felipe G. Massa - 2013 - Journal of Business Ethics 115 (1):135-147.
Focus, Sensitivity, Judgement, Action: Four Lenses for Designing Morally Engaging Games.Malcolm Ryan, Dan Staines & Paul Formosa - 2017 - Transactions of the Digital Games Research Association 2 (3):143-173.
Virtues of Art: Good Taste.Dominic McIver Lopes - 2008 - Aristotelian Society Supplementary Volume 82 (1):197-211.
An Aristotelian Model of Moral Development.Wouter Sanderse - 2015 - Journal of Philosophy of Education 49 (3):382-398.

Analytics

Added to PP
2023-11-07

Downloads
4 (#1,572,457)

6 months
4 (#754,937)

Historical graph of downloads
How can I increase my downloads?

Citations of this work

No citations found.

Add more citations

References found in this work

No references found.

Add more references