We test whether a bias exists in analyst recommendations for firms that file for bankruptcy
during 1995–2001. We fail to find overoptimism in analyst recommendations, including …

Beginning in the 1990s, firms often continue to trade on the major national exchanges after
Chapter 11 bankruptcy filings. For bankruptcies filed from 1993–2003, we find that the more …

This study builds on recent research by Clarke, Ferris, Jayaraman, and Lee. Based on a
sample of US bankruptcies between 1995 and 2001, Clarke et al. failed to find evidence of a …

This paper asks whether the stocks of bankrupt firms are correctly priced, and explores who
trades the stocks of these firms, and why. We show that firms in Chapter 11 are heavily …

We examined market reactions to the financial distress announcements of listed firms in
Malaysia. We investigated whether the market differentiates between the politically …

Classical financial economics was generally based on free competition, perfect information,
efficient markets, rational utility maximizing individuals and profit maximizing firms. In this …

Recent newspaper articles have reported cases where exchange-listed stocks of bankrupt
companies have traded at prices well above the value allocated to shareholders under the …

Bankrupt firms' stock displays unique lottery-like characteristics: for only a few cents per
stock one can engage in an investment strategy that offers a low probability of huge future …

In this study we test for the presence of over-optimism in analyst recommendations for a
sample of bankrupt firms over the 1995-2001 period. Our findings indicate a pervasive over …

We examine the price dynamics of the stocks of firms that remain listed on a major US
exchange after their Chapter 11 filing, and document negative realized returns of at least …