15456. "The New Financial Capitalists: Kohlberg Kravis Roberts and the Creation of Corporate Value" by G. Baker and G. Smith (Book Review). This term paper provides a summary and critical analysis of this 1998 book which focuses on the leverage buyout as pioneered by the Wall Street firm Kohlberg Kravis Roberts (KKR). Evaluates the major themes presented in the book, including the idea that financial structure matters to corporate value creation, that value creation is a long-term prospect, and that aligning managerial and ownership interests leads to good results. While the authors’ main arguments are deemed valid and well-made, and although the book provides an excellent history of the leverage buyout, its central strengths are fatally weakened by the overwhelming pro-KKR bias of the authors. Keywords: book review leverage buyouts KKR. 10 pages; 14 footnotes; 1 bibliographic source.