The secured creditor control in the resolution of distress in small businesses can have two effects: it can reduce the ex-post cost of financial distress but, on the other hand, secured creditors and business owners may collude to divert value from junior creditors. This concern has been...

Financial strategy is about how companies raise funds and manage them within their organizations. Corporate governance is relevant to both of these aspects, and an understanding of corporate governance is vital for an appreciation of corporate finance. This chapter from Corporate Financial...

In May 2000, Companies and Securities Advisory Committee (CASAC) in its Corporate Groups Final Report 2000, recommended as a further safeguard to creditors, the introduction of an enterprise approach to regulating corporate groups. This recommendation, like the majority of the report's...

The first half of this article considered how the actions of directors seeking to serve the interests of parent company shareholders may result in losses to creditors of corporate group members. In this second half, current creditor protections are compared to the adoption of enterprise...

In this article, I explore potentially significant links between tangible insolvency, leverage and firm failure and what they might mean for the Chapter 11 plan confirmation process and feasibility testing. My preliminary analysis confirms that debtors emerging with tangibly insolvent and...

This study compares the valuations of debtors emerging from Chapter 11 with the valuations of similar publicly traded firms. For each debtor in my sample, I collect valuation experts' enterprise and equity valuations that are judicially confirmed and based on managements' published financial...

We assess the diverse roles of institutional investors in impacting survival and performance of chronically underperforming firms and contrast the results for consistently overperforming firms. We find material differences in institutional investor roles between these two samples....

There are few things more constant in life than the rise and fall of financial markets. When markets crash, however, we are forced to restore them while learning from our mistakes. In the wake of the recent subprime mortgage crisis, Congress has drastically but deservedly overhauled the...

The average publicly-traded firm pays its CEO millions of dollars in deferred compensation and defined-benefit pension commitments. Scholars debate whether firms use these payments to efficiently align managerial interests with those of creditors, or whether instead they represent “hidden”...

We focus on firms that chronically underperform and evaluate ways that institutional investors can facilitate the redeployment of assets to higher valued uses. Our evidence indicates that institutional holdings affect firm survival. Increases in institutional holdings are associated with...