Are firms on the right page with Chapter 11? An analysis of firm choices that contribute to post-bankruptcy survival

Vicki L. Bogan and Chad M. Sandler

Applied Economics Letters, 2012, vol. 19, issue 7, 609-613

Abstract: Historically, corporate bankruptcy reorganization has generated varying results with respect to subsequent firm performance. Some firms reorganize effectively and emerge as more efficient and productive enterprises. However, other inefficient companies strive to survive by utilizing the rehabilitative process of Chapter 11; though liquidation might be a more suitable course of action. This study investigates which characteristics of firm performance and Chapter 11 bankruptcy are linked to successful emergence upon reorganization. We find that the strongest contributor to post-bankruptcy survival is having new management in place. This suggests that Chapter 11 can be utilized as an effective rehabilitative tool in the ‘right hands’.

Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://hdl.handle.net/10.1080/13504851.2011.591721 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:apeclt:v:19:y:2012:i:7:p:609-613

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20

DOI: 10.1080/13504851.2011.591721

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().