Finance and Financial Management Commons^™

The Effect Of The 2008 Financial Crisis On Firm-Specific Bankruptcy Emergence Indicators, Nicholas Lefavor

HON499 projects

This study seeks to demonstrate the relationship between firm-specific variables and their probability of emerging from Chapter 11 bankruptcy prior to and after the 2008 financial crisis. Using univariate analysis and multivariate logistic regressions, this study models a firm's probability of emerging from bankruptcy using a combination of ten firm-specific variables. The findings of this study show that the amount of time a firm spends in bankruptcy as well as whether the firm replaced their CEO during the bankruptcy process serve as indicators for bankruptcy emergence in a pre-crisis sample. Indicators of bankruptcy emergence were not found in the post-crisis …