Asset efficiency and reallocation decisions of bankrupt firms

Article Abstract:

This paper investigates whether Chapter 11 bankruptcy provides a mechanism by which insolvent firms are efficiently reorganized and the assets of unprotective firms are effectively redeployed. We argue that incentives to reorganize depend on the level of demand and industry conditions. Using plant-level data, we find that Chapter 11 status is much less important than industry conditions in explaining the productivity, asset sales, and closure conditions of Chapter 11 bankrupt firms. This suggests that firms that elect to enter Chapter 11 incur few real economic costs. (Reprinted by permission of the publisher.)

Author: Maksimovic, Vojislav, Phillips, Gordon
Publisher: Blackwell Publishers Ltd.
Publication Name: Journal of Finance
Subject: Business
ISSN: 0022-1082
Year: 1998
Decision-making, Decision making, Management, Portfolio management, Assets (Accounting), Bankruptcy, Business failures

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Executive compensation and corporate acquistion

Article Abstract:

A paper elucidating the connection between corporate acquisition decisions and executive remuneration is presented. Research results reveal a strong correlation between stock-based compensation schemes and merger activities.

Author: Datta, Sudip, Iskandar-Datta, Mai, Raman, Kartik
Publisher: Blackwell Publishers Ltd.
Publication Name: Journal of Finance
Subject: Business
ISSN: 0022-1082
Year: 2001
Economics, Research and Development in the Social Sciences and Humanities, Analysis, Acquisitions and mergers, Compensation and benefits, Economic research, Executives, Executive compensation

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Subjects list: Research
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