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Financial Distress, Stock Returns, and the 1978 Bankruptcy Reform Act
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Financial Distress, Stock Returns, and the 1978 Bankruptcy Reform Act (2015)Financial Distress, Stock Returns, and th…In Search of Distress Risk (2008)In Search of Distress RiskDebt Enforcement around the World (2008)Debt Enforcement around the W…Forecasting Bankruptcy More Accurately: A Simple Hazard Model (2001)Forecasting Bankruptcy More A…Law and Finance (1998)Law and FinanceOn Persistence in Mutual Fund Performance (1997)On Persistence in Mutual Fund…Legal Determinants of External Finance (1997)Legal Determinants of Externa…Event Studies in Economics and Finance (1997)Event Studies in Economics an…Financial Distress and Corporate Performance (1994)Financial Distress and Corpor…Corporate Debt Value, Bond Covenants, and Optimal Capital Structure (1994)Corporate Debt Value, Bond Co…Anatomy of Financial Distress: An Examination of Junk-Bond Issuers (1994)Anatomy of Financial Distress…A Theory of Debt Based on the Inalienability of Human Capital (1994)A Theory of Debt Based on the…Structural and Return Characteristics of Small and Large Firms (1991)Structural and Return Charact…A Theory of Debt Based on the Inalienability of Human Capital (1991)A Theory of Debt Based on the…Troubled debt restructurings (1990)Troubled debt restructuringsBrownian Motion and Stochastic Flow Systems. (1987)Brownian Motion and Stochasti…Risk, Return, and Equilibrium: Empirical Tests (1973)Risk, Return, and Equilibrium…Financial constraints and the financial distress puzzle: Evidence from a frontier market before and during the Covid-19 pandemic (2022)Financial constraints and the…Extrapolation Bias and Robust Dynamic Liquidity Management (2021)Extrapolation Bias and Robust…The Bright Side of Fire Sales (2019)The Bright Side of Fire SalesDebt Renegotiation and Debt Overhang: Evidence from Lender Mergers (2019)Debt Renegotiation and Debt O…Shareholder Bargaining Power, Debt Overhang, and Investment (2018)Shareholder Bargaining Power,…Macroeconomic Risk and Idiosyncratic Risk-taking (2018)Macroeconomic Risk and Idiosy…Financial Frictions, Financial Shocks, and Aggregate Volatility (2018)Financial Frictions, Financia…Bankruptcy reforms in the midst of the Great Recession: The Spanish experience (2018)Bankruptcy reforms in the mid…Agency Conflicts around the World (2018)Agency Conflicts around the W…Indirect Costs of Financial Distress and Bankruptcy Law: Evidence from Trade Credit and Sales (2017)Indirect Costs of Financial D…Distress Anomaly and Shareholder Risk: International Evidence (2017)Distress Anomaly and Sharehol…Insolvency Resolution and the Missing High-Yield Bond Markets (2016)Insolvency Resolution and the…Debt Refinancing and Equity Returns (2015)Debt Refinancing and Equity R…Do Stock Returns Really Decrease with Default Risk? New International Evidence (2013)Do Stock Returns Really Decre…What Do We Know about Capital Structure? Some Evidence from International Data (1995)A Survey of Corporate Governance (1997)Corporate Ownership Around the World (1999)Investor protection and corporate governance (2000)CAPITAL ASSET PRICES: A THEORY OF MARKET EQUILIBRIUM UNDER CONDITIONS OF RISK* (1964)The Behavior of Stock-Market Prices (1965)THE VALUATION OF RISK ASSETS AND THE SELECTION OF RISKY INVESTMENTS IN STOCK PORTFOLIOS AND CAPITAL BUDGETS**This paper is another in a series of interrelated theoretical and statistical studies of corporate financial and investment policies being made under grants from the Rockefeller Foundation, and more recently the Ford Foundation, to the Harvard Business School. The generous support for this work is most gratefully acknowledged. The author is also much indebted to his colleagues Professors Bishop, Christenson, Kahr, Raiffa, and (especially) Schlaifer, for extensive discussion and commentary on an earlier draft of this paper; but responsibility for any errors or imperfections remains strictly his own.[Professor Sharpe's paper, “Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk” (Journal of Finance, September 1964) appeared after this paper was in final form and on its way to the printers. My first section, which parallels the first half of his paper (with corresponding conclusions), sets the algebraic framework for sections II, III and VI, (which have no counterpart in his paper) and for section IV on the equilibrium prices of risk assets, concerning which our results differ significantly for reasons which will be explored elsewhere. Sharpe does not take up the capital budgeting problem developed in section V below.] (1975)Theory of the firm: Managerial behavior, agency costs and ownership structure (1976)Corporate financing and investment decisions when firms have information that investors do not have (1984)The Cross-Section of Expected Stock Returns (1992)The determinants and implications of corporate cash holdings (1999)Default Risk in Equity Returns (2004)The arbitrage theory of capital asset pricing (1976)Stock Market Liberalization, Economic Reform, and Emerging Market Equity Prices (2000)Capital markets research in accounting (2001)Introductory Econometrics for Finance (2008)Common risk factors in the returns on stocks and bonds (1993)Multifactor Explanations of Asset Pricing Anomalies (1996)Illiquidity and stock returns: cross-section and time-series effects (2002)A five-factor asset pricing model (2014)The Pricing of Options and Corporate Liabilities (1973)A Simple Approach to Valuing Risky Fixed and Floating Rate Debt (1995)The Determinants of Credit Spread Changes (2001)The theory and practice of corporate finance: evidence from the field (2001)The Cost of Capital, Corporation Finance and the Theory of Investment (1958)The Colonial Origins of Comparative Development: An Empirical Investigation (2001)Editor's Choice Digesting Anomalies: An Investment ApproachAdvances in prospect theory: Cumulative representation of uncertainty (1992)Forecasting Default with the Merton Distance to Default Model (2008)… and the Cross-Section of Expected Returns (2015)FINANCIAL RATIOS, DISCRIMINANT ANALYSIS AND THE PREDICTION OF CORPORATE BANKRUPTCY (1968)Financial Ratios and the Probabilistic Prediction of Bankruptcy (1980)Methodological Issues Related to the Estimation of Financial Distress Prediction Models (1984)Modeling Term Structures of Defaultable Bonds (1999)The Financial Accelerator and the Flight to Quality (1996)Liquidity Risk, Liquidity Creation, and Financial Fragility: A Theory of Banking (2001)Private credit in 129 countries☆ (2007)
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References

  • 1998Law and Finance17,902 cited
  • 1997On Persistence in Mutual Fund Performance17,267 cited
  • 1973Risk, Return, and Equilibrium: Empirical Tests14,248 cited
  • 1997Legal Determinants of External Finance9,776 cited
  • 1997Event Studies in Economics and Finance4,623 cited
  • 1994Corporate Debt Value, Bond Covenants, and Optimal Capital Structure2,732 cited
  • 2001Forecasting Bankruptcy More Accurately: A Simple Hazard Model2,655 cited
  • 2008In Search of Distress Risk2,232 cited
  • 1994Financial Distress and Corporate Performance1,660 cited
  • 1994A Theory of Debt Based on the Inalienability of Human Capital1,441 cited
  • 1990Troubled debt restructurings1,096 cited
  • 1987Brownian Motion and Stochastic Flow Systems.1,091 cited
  • 1991A Theory of Debt Based on the Inalienability of Human Capital1,060 cited
  • 1994Anatomy of Financial Distress: An Examination of Junk-Bond Issuers940 cited
  • 2008Debt Enforcement around the World932 cited
  • 1991Structural and Return Characteristics of Small and Large Firms826 cited

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  • 2018Agency Conflicts around the World58 cited
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  • 2013Do Stock Returns Really Decrease with Default Risk? New International Evidence40 cited
  • 2019The Bright Side of Fire Sales36 cited
  • 2017Distress Anomaly and Shareholder Risk: International Evidence32 cited
  • 2018Financial Frictions, Financial Shocks, and Aggregate Volatility31 cited
  • 2018Bankruptcy reforms in the midst of the Great Recession: The Spanish experience31 cited
  • 2022Financial constraints and the financial distress puzzle: Evidence from a frontier market before and during the Covid-19 pandemic31 cited
  • 2018Macroeconomic Risk and Idiosyncratic Risk-taking31 cited
  • 2019Debt Renegotiation and Debt Overhang: Evidence from Lender Mergers25 cited
  • 2018Shareholder Bargaining Power, Debt Overhang, and Investment21 cited
  • 2021Extrapolation Bias and Robust Dynamic Liquidity Management21 cited