The equity performance of firms emerging from bankruptcy

• 成果类型: Article
• 署名作者: Eberhart, AC; Altman, EI; Aggarwal, R
• 署名单位: Georgetown University; New York University
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/0022-1082.00169
• 发表日期: 1999
• 页码: 1855-1868
• 关键词: STOCK RETURNS; RESTRUCTURINGS; transactions; INFORMATION; RESOLUTION; OFFERINGS; distress; priority; claims; COSTS

摘要

This study assesses the stock return performance of 131 firms emerging from Chapter 11. Using differing estimates of expected returns, we consistently find evidence of large, positive excess returns in 200 days of returns following emergence. We also examine the reaction of our sample firms' equity returns to their earnings announcements after emergence from Chapter II. The positive and significant reactions suggest that our results are driven by the market's expectational errors, not mismeasurement of risk. The results provide an interesting contrast, but not a contradiction, to previous work that has documented poor operating performance for firms emerging from Chapter II.