We investigate the valuation effect of 303 hand-collected restructuring announcements made by 100 distressed listed companies in China and provide insights on which restructuring mechanisms enhance value in this emerging market context. Asset restructuring is the most popular strategy. In the...

This paper is one of the first studies to empirically examine the nature and cause of financial distress in an emerging market context. This is important given the impact of the recent global privatization phenomenon. These privatized firms have since been subject to a new competitive...

We study the relation between capital structure and abnormal returns. We show that a firm's industry matters. Abnormal returns decline in firm leverage. However, abnormal returns increase as the average industry leverage in a risk class increases. Separating the average level of external...