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Finance and Financial Management Commons

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Bryant University

Series

Analyst rating; Chapter 11 reorganization; corporate bankruptcy; distress

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Full-Text Articles in Finance and Financial Management

Analyst Ratings For Firms Filing And Reorganizing Under Chapter 11, Elena Precourt, Henry Oppenheimer Feb 2017

Analyst Ratings For Firms Filing And Reorganizing Under Chapter 11, Elena Precourt, Henry Oppenheimer

Accounting Department Faculty Journal Articles

Purpose

The purpose of this paper is to examine analyst followings of firms starting from one year prior to their filing for Chapter 11 and as the firms progress through bankruptcy proceedings with a focus on firms receiving “Hold” or better recommendations. The authors attempt to answer questions such as what the common characteristics of the firms receiving stronger than expected recommendations one year prior to filing for bankruptcy reorganization or while in bankruptcy are, and how the market reacts to the issuance of stronger ratings for those firms.

Design/methodology/approach

The authors design various regressions and apply them to a …