A Re-examination of the Effectiveness of the Bankruptcy Process
As an increasing number of companies go bankrupt, society grows concerned with the process's efficacy. In contrast to previous research, we find that relatively healthy companies emerge from bankruptcy as evidenced by their operating and equity performance post bankruptcy. While we find a substantial degree of variation in the forecast accuracy of sales, EBIT and net income, we find that forecast errors are not statistically significant and are smaller than had been thought. We provide evidence to support the argument that the economy's health affects operating and equity outcomes post bankruptcy. Copyright Blackwell Publishers Ltd 2002.
Year of publication: |
2002
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Authors: | Platt, Harlan D. ; Platt, Marjorie B. |
Published in: |
Journal of Business Finance & Accounting. - Wiley Blackwell, ISSN 0306-686X. - Vol. 29.2002, 9&10, p. 1209-1237
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Publisher: |
Wiley Blackwell |
Saved in:
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