Emerging From the Shadows: Consequences of Position Disclosure in Corporate Bankruptcy

• 成果类型: Article
• 署名作者: Chen, Kevin D.
• 署名单位: Duke University
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826; 1558-7967
• DOI: 10.2308/TAR-2024-0075
• 发表日期: 2026-03
• 页码: 57-87
• 关键词: disclosure; regulation; bankruptcy; Chapter 11; Restructuring; Rule 2019; Hedge funds; performance; INFORMATION; valuation; QUALITY; rules; LEVEL; cost

摘要

I examine how mandatory position disclosure of claimholders' economic interests affects Chapter 11 bankruptcy outcomes. Exploiting a regulation that increased disclosure by creditors and equityholders on certain committees, I find that position disclosure is associated with a decrease in the length of bankruptcy cases, especially the duration of negotiations between claimholders across classes. Further, I show that position disclosure is associated with lower post-bankruptcy recidivism. Contrary to the concerns expressed by critics, I find little evidence that position disclosure reduced claimholders' participation in committees or decreased trading in the market for bankruptcy claims. My findings highlight the overall benefits of position disclosure in facilitating negotiations during bankruptcy.