Shareholder Wealth Responses to Bankruptcy Filing Announcements under the Chandler and Reform Acts

This paper examines shareholder wealth responses to bankruptcy filing announcements between 1974 and 1989 to draw inferences about the impact of the adoption of the Bankruptcy Reform Act of 1978. The authors find that post‐Reform Act announcements are associated with more negative pre‐filing and ann...

Full description

Saved in:
Bibliographic Details
Published in:The Financial review (Buffalo, N.Y.) N.Y.), 1995-02, Vol.30 (1), p.1-22
Main Authors: Rimbey, James N., Anderson, Seth C., Born, Jeffery A.
Format: Article
Language:English
Subjects:
Bankruptcy
Bankruptcy Reform Act 1978-US
Impacts
Shareholders wealth
Stockholders
Studies
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:This paper examines shareholder wealth responses to bankruptcy filing announcements between 1974 and 1989 to draw inferences about the impact of the adoption of the Bankruptcy Reform Act of 1978. The authors find that post‐Reform Act announcements are associated with more negative pre‐filing and announcement period returns to shareholders. Unlike prior research, this study finds that large firms and NYSE‐listed firms experience more negative returns. It also finds that the market can discriminate between firms that are ultimately worthless and those that may retain some value for shareholders.
ISSN:0732-8516
1540-6288
DOI:10.1111/j.1540-6288.1995.tb00822.x