We examine a sample of 8,313 cases, between 1951 and 2001, where firms unexpectedly
increase their research and development (R&D) expenditures by a significant amount. We …

Claims ultimately awarded to shareholders of firms in reorganization were examined for a
sample of 30 filings under the 1978 Bankruptcy Reform Act. We measured the amount paid to …

This study assesses the stock return performance of 131 firms emerging from Chapter 11.
Using differing estimates of expected returns, we consistently find evidence of large, positive …

Previous studies document negative long-term abnormal stock returns following seasoned
equity offering (SEO) issuances and conclude that markets are inefficient. Other studies, …

Investigates the efficiency of the market for bonds of firms that default and subsequently file
for Chapter 11. Violations of absolute priority rule; Benefit of lowest-priority claimants from …

In a June 12, 1990 "Wall Street Journal" article entitled "Warning Flag: When a Firm's Stocks
and Bonds Diverge," the stocks and bonds of companies such as Pan Am and TWA were …

This study shows the extent to which deviations from the absolute priority rule increase or
decrease the bankruptcy emergence payoff to traded (ie, usually junior claimants) bondholders…

I investigate the relationship between the amount of information provided by a firm's comparables
(ie, firms in the same line of business as the firm being valued) and the precision of the …

The valuation of equity using multiples of comparables is a highly popular technique that
depends critically on two factors: the multiple that is used, and the comparables that are chosen…

Many studies use the book value of debt as a proxy for its market value because most corporate
debt does not trade. I call this practice the book value of debt (BVD) approximation, and …