Eun, Cheol S.; Jang, H. Jonathan - In: Multinational Finance Journal 4 (2000) 3-4, pp. 221-245
In this paper, we examine the behavior of stock prices of individual firms with different bond ratings surrounding the October market crash of 1987 and therefrom make inferences about the significance of bankruptcy costs borne by stockholders. The key findings are as follows: Immediately...