[Lichtenberg and Siegel, NBER, 1989] R&D as a fraction of sales

grows at the same rate in LBOs as in comparable public companies

(Jensen 1989).
Lerner et al (2011) Buyout transactions lead to significant increases in
LT innovation. patents applied for by firms in PE transactions are more
frequently cited (a proxy for economic importance), show no significant
shifts in the fundamental nature of the research, and are more
concentrated in the most important and prominent areas of companies
innovative portfolios.
Long & Ravenscraft (1993) LBOS, DEBT AND RESEARCH-ANDDEVELOPMENT INTENSITY.
Holthausen & Larcker (1996) The financial performance of reverse
leveraged buyouts.
Chou, Gombola & Liu (2006) Earnings Management and Stock
Performance of Reverse Leveraged Buyouts.
Chou et al (2006) Discretionary current accruals (proxy for earnings
management) is positive and significant and also related to post-offering
stock returns. LBO firms with the most aggressive signs of earnings
management earn post-offering returns between 15-25% lower than those
who are more conservative. This performance is evident as early as one
year following the offer and remains constant for up to four years.
Guo, Edith, Hotchkiss and Song (2009) compares the LBOs between 19902006 vs 1980-1989. They find the former are more conservatively priced and
less highly levered. The returns to either pre/post buyout capital invested are
large and positive. Gains in operating performance comparable or slightly exceed
benchmark firms.
Phalippou, Gottschlag (2009) -