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Full-Text Articles in Finance and Financial Management
Eva: An Indicator Of Corporate Bankruptcy?, Amanda (Jinxian) Lu
Eva: An Indicator Of Corporate Bankruptcy?, Amanda (Jinxian) Lu
Honors College Theses
Economic value added (EVA) analysis is one of the most common methods to evaluate company’s performance in terms of value creation, which involves ROIC (Return on Invested Capital) and WACC (Weighted Average Cost of Capital) as key drivers. Past studies evaluate the superiority of EVA over other measures of performance and relationship between EVA and stock returns. This paper analyzes the relationship between EVA and bankruptcy on 373 public traded companies in U.S. of which 178 companies filed for bankruptcy between the year of 2015 to October 2017. We present descriptive statistics, conduct univariae grouping tests and correlation between ROIC, …
The Effect Of The 2008 Financial Crisis On Firm-Specific Bankruptcy Emergence Indicators, Nicholas Lefavor
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 …