Sources of gains to shareholders from bankruptcy resolution

Journal of Banking and Finance

Volumn 23, Issue 1, 1999, Pages 21-47

  Indro, Daniel C ^a   Leach, Robert T ^b   Lee, Wayne Y ^c  

^a KENT STATE UNIVERSITY   (United States)

^b Kent Stt Univerisity Stark Campus ^*  (United States)

^c UNIVERSITY OF ARKANSAS   (United States)

Author keywords

Bankruptcy; G33; G34; Restructuring; Shareholder gains

Indexed keywords

EID: 0037680023     PISSN: 03784266     EISSN: None     Source Type: Journal    
DOI: 10.1016/S0378-4266(98)00075-2     Document Type: Article

References (37)

1. Akerlof G. The market for "lemons": Quality uncertainty and the market mechanisms. Quarterly Journal of Economics. 84:1970;488-500.
2. Allen, F., 1985. Capital structure and imperfect competition in product markets. Working paper, Wharton School, University of Pennsylvania, Philadelphia, PA.
3. Altman, E.I., 1991. Investing in distressed securities, in: Di Napoli, D., Sigoloff, S.C., Cushman, R.F. (Eds.), Workouts and Turnarounds: The Handbook of Restructuring and Investing in Distressed Companies. Irwin, Homewood, IL.
4. Arbel A., Strebel P. Pay attention to neglected firms! Journal of Portfolio Management. 9:1983;37-42.
5. Betker B.L. Management incentives, equity's bargaining power, and deviations from absolute priority in Chapter 11 bankruptcies. Journal of Business. 68:1995;161-183.
6. Brander J.A., Lewis T.R. Oligopoly and financial structure: The limited liability effect. American Economic Review. 76:1986;956-970.
7. Brown K.C., Harlow W.V., Tinic S.M. Risk aversion, uncertain information, and market efficiency. Journal of Financial Economics. 22:1988;355-385.
8. Cragg J.G. Some statistical models for limited dependent variables with application to the demand for durable goods. Econometrica. 39:1971;829-844.
9. Datta S., Iskandar-Datta M.E. The information content of bankruptcy filing on securityholders of the bankrupt firm: An empirical investigation. Journal of Banking and Finance. 19:1995;903-919.
10. Datta S., Iskandar-Datta M.E. Reorganization and financial distress: An empirical investigation. Journal of Financial Research. 18:1995;15-32.
11. Eberhart A.C., Moore W.T., Roenfeldt R.L. Security pricing and deviations from the absolute priority rule in bankruptcy proceedings. Journal of Finance. 45:1990;1457-1469.
12. Ellis J. A saintly stock picker names angels to ascend 48% in 1995. Money. 24:1995;149-152.
13. Fisher J.A. An analysis of consumer durable goods expenditures in 1957. Review of Economics and Statistics. 27:1962;431-437.
14. Franks J.R., Torous W.N. A comparison of financial recontracting in distressed exchanges and Chapter 11 reorganizations. Journal of Financial Economics. 35:1994;349-370.
15. Giammarino R.M. The resolution of financial distress. Review of Financial Studies. 2:1989;25-47.
16. Gilson S.C., John K., Lang L.H.P. Troubled debt restructurings: An empirical study of private reorganizations of firms in default. Journal of Financial Economics. 27:1990;315-354.
17. Goldberger, A.S., 1964. Econometric Theory. Wiley, New York.
18. Green R.C. Investment incentives debt and warrants. Journal of Financial Economics. 13:1984;115-136.
19. Harpel J. Fallen angels: Jim Harpel searches for stocks with big turnaround potential. Barron's. 72(16/17):1992;21-29.
20. Howe, J.T., 1990. Investing in Chapter 11 companies. In: Fabozzi, F.J. (Ed.), The New High-Yield Debt Market: A Handbook for Portfolio Managers and Analysts. Harper Business, New York.
21. Jaffe T. Fallen angels. Forbes. 156:1995;214-216.
22. James C.M. Some evidence on the uniqueness of bank loans. Journal of Financial Economics. 19:1987;217-236.
23. James C.M. Bank debt restructurings and the composition of exchange offers in financial distress. Journal of Finance. 51:1996;711-727.
24. Jensen M.C., Meckling W.H. Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of Financial Economics. 3:1976;305-360.
25. John K. Managing financial distress and valuing distressed securities: A survey and a research agenda. Financial Management. 22:1993;60-78.
26. Lang L.H.P., Stulz R.M. Contagion and competitive intra-industry effects of bankruptcy announcements. Journal of Financial Economics. 32:1992;45-60.
27. Maddala, G.S., 1983. Limited Dependent and Qualitative Variables in Econometrics. Cambridge University Press, Cambridge.
28. Maksimovic V. Capital structure in repeated oligopolies. Rand Journal of Economics. 19:1988;389-407.
29. Morse D., Shaw W. Investing in bankrupt firms. Journal of Finance. 43:1988;1193-1206.
30. Myers S.C. Determinants of corporate borrowing. Journal of Financial Economics. 5:1977;147-175.
31. Opler T.C., Titman S. Financial distress and corporate performance. Journal of Finance. 49:1994;1015-1040.
32. Phalon R. Cheap stocks. Forbes. 146:1990;124-125.
33. Putnam III, G., 1991. Strategies for investing in distressed firms. In: Levine, S.N. (Ed.), Investing in Bankruptcies and Turnarounds. Harper Business, New York.
34. Titman S. The effect of capital structure on a firm's liquidation decision. Journal of Financial Economics. 13:1984;137-151.
35. Welling K. Underfollowed and unloved. Barron's. 73:1993;22-30.
36. White H. A heteroskedasticity-consistent covariance matrix estimator and a direct test for heteroskedasticity. Econometrica. 48:1980;817-838.
37. Wruck K.H. Financial distress, reorganization, and organizational efficiency. Journal of Financial Economics. 27:1990;419-444.