Advertisement

Abstract

Corporate financial distress has changed dramatically over the past decade. From the onset of the general economic recession at the turn of the century to the present, there has been a tremendous increase in default rates and bankruptcy activity in the corporate sector throughout Europe. Firms that only a few years before had been labelled the rising stars of a new epoch and had raised massive amounts of funds on very generous terms, now suffered from inherently unprofitable business models and excessive burdens of debt. This twist of fate for the industry along with the increasing number of company scandals in recent years have raised concerns about the corporate sector’s financial stability.

Keywords

Financial Distress Ownership Concentration Corporate Sector Announcement Return Debt Restructuring 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Bibliography for Chapter 1

  1. Andrade, G., and S. N. Kaplan (1998): “How Costly is Financial (Not Economic) Distress? Evidence from Highly Leveraged Transactions That Became Distressed,” The Journal of Finance, 53, 1443–1493.CrossRefGoogle Scholar
  2. Asquith, P., R. Gertner, and D. Soharfstein (1994): “Anatomy of Financial Distress: An Examination of Junk-Bond Issuers,” The Quarterly Journal of Economics, 109, 625–658.CrossRefGoogle Scholar
  3. Becker, W. (2003): “Geier oder Notärzte? US-Investoren wittern in deutschen Turnaround-Kandidaten hohe Renditen,” Börsen-Zeitung, (158 [08.19.03]), 13.Google Scholar
  4. Bolton, P., and D. S. Soharfstein (1996): “Optimal Debt Structure and the Number of Creditors,” The Journal of Political Economy, 104, 1–25.CrossRefGoogle Scholar
  5. Franks, J. R., K. Nyborg, and W. Torous (1996): “A Comparison of US, UK, and German Insolvency Codes,” Financial Management, 25, 19–30.CrossRefGoogle Scholar
  6. Franks, J. R., and W. N. Torous (1989): “An Empirical Investigation of U.S. Firms in Reorganization,” The Journal of Finance, 44, 747–769.CrossRefGoogle Scholar
  7. Gertner, R., and D. Soharfstein (1991): “A Theory of Workouts and the Effects of Reorganization Law,” The Journal of Finance, 46, 1189–1222.CrossRefGoogle Scholar
  8. Gilson, S. C. (1990): “Bankruptcy, Boards, Banks, and Blockholders,” Journal of Financial Economics, 27, 355–387.CrossRefGoogle Scholar
  9. James, C. (1996): “Bank Debt Restructurings and the Composition of Exchange Offers in Financial Distress,” The Journal of Finance, 51, 711–727.CrossRefGoogle Scholar
  10. Jensen, M. C. (1989): “Active Investors, LBO’s and Privatization of Bankruptcy,” Journal of Applied Corporate Finance, 2, 35–44.CrossRefGoogle Scholar
  11. Kaiser, K. M. (1996): “European Bankruptcy Laws: Implications for Coporations Facing Financial Distress,” Financial Management, 25, 67–85.CrossRefGoogle Scholar
  12. Manski, C., and D. McFadden (1983): “Alternative Estimators and Sample Designs for Discrete Choice Analysis,” in Structural Analysis of Discrete Data with Econometric Applications, ed. by C. Manski, and D. McFadden, pp. 2–50. MIT Press, Boston, MA.Google Scholar
  13. Myers, S. C. (1977): “Determinants of Corporate Borrowing,” Journal of Financial Economics, 5, 147–175.CrossRefGoogle Scholar
  14. Nowak, E. (2001): “Recent Developments in German Capital Markets and Corporate Governance,” Journal of Applied Corporate Finance, 14, 35–48.CrossRefGoogle Scholar
  15. Rudolph, B. (2003): “Unternehmensfinanzierung und Corporate Governance-Entwicklungen und weiterer Anpassungsbedarf,” Betriebs-Berater, 58, 2053–2060.Google Scholar
  16. Senbet, L. W., and J. K. Seward (1995): “Financial Distress, Bankruptcy and Reorganization,” in Finance, ed. by R. A. Jarrow, V. Maksimovic, and W. T. Ziemba, pp. 921–957, Amsterdam, N.H. Elsevier.CrossRefGoogle Scholar
  17. Sussman, O. (2005): “The Economics of the EU’s Corporate-Insolvency Law and the Quest for Harmonisation by Market Forces,” University of Oxford Working Paper 2005-FE-16.Google Scholar

Copyright information

© Deutscher Universitäts-Verlag | GWV Fachverlage GmbH, Wiesbaden 2007

Personalised recommendations