Does Jensen’s Free Cash Flow Hypothesis Explain European LBOs Today? by AndreBetzer

SSRN-Does Jensen’s Free Cash Flow Hypothesis Explain European LBOs Today? by Andre Betzer:Andre Betzer looks at European Leveraged Buyouts (financed with at least 50% debt) to determine if Jensen's Free Cash Flow (FCF) Hypothesis can explain (or predict) the the LBO.Jensen's FCF hypothesis is that firms with high levels of Cash flow will waste it on negative NPV projects. From this, it has been