Finance and Financial Management Commons^™

Three Essays In Chapter 11 Bankruptcy: Post Bankruptcy Performance, Bankrupt Stock Performance, And Relationship With Hedge Funds And Other Vulture Investors, Min Xu

Open Access Dissertations

Firms that emerged from Chapter 11 as public companies have tons of characteristics. The first essay analyzes their post bankruptcy performance, duration effect, and the quality of their projection information. While the sample's post bankruptcy performance does show improvement, their projections tend to be optimistic. Firms with shorter durations in Chapter 11generally achieve better performance than those with longer durations, in terms of Z-scores, but not in excess returns. Compared to firms that did not provide (complete) projection information, the sample firms generally exhibit better improvement, as measured by Z-scores and short term excess returns. The second essay tracks the …