Ho, Chun-Yu; McCarthy, Patrick; Yang, Yi; Ye, Xuan - In: Empirical Economics 45 (2013) 3, pp. 1205-1232
This paper examines North American pulp and paper company bankruptcies that occurred between 1990 and 2009. We demonstrate that shareholders suffer substantial losses (37 %) during the month a bankruptcy occurs. Encouragingly, we show that financial ratios are useful in predicting firm failure...