-
Journal menu
- General information
- Editorial Board and External Reviewers
- Journal Policies
- Publication Ethics and Malpractice Statement
- Instructions for authors
- Paper reviewing
- Article processing charge
- Feedback from stakeholders
- Journal’s Open Access statement
- Order hard copies of the journal
- 50 most cited papers in the journal
THE EFFECT ON RIVALS WHEN FIRMS EMERGE FROM BANKRUPTCY
Download This ArticleAbstract
Studies on the announcement effects of bankruptcy filings have found that when a firm files for Chapter 11 bankruptcy protection its shareholders suffer significant losses. A recent paper extends these findings by investigating the announcement effect on rival companies, while another examines the equity performance of firms emerging from bankruptcy. We combine these two lines of inquiry by examining the effect on rivals when a firm emerges from the protection of Chapter 11. We find both significant negative stock market returns and significant negative revisions in analysts’ earnings forecasts for rivals of successfully reorganized companies.
Keywords: Bankruptcy, Stock Market, Firms
How to cite this paper: Caton, G. L., Donaldson, J., & Goh, J. (2008). The effect on rivals when firms emerge from bankruptcy. Corporate Ownership & Control, 6(2-2), 304-311. https://doi.org/10.22495/cocv6i2c2p5