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http://hdl.handle.net/10419/19625
  

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dc.contributor.authorvon Kalckreuth, Ulfen_US
dc.date.accessioned2009-01-28T16:01:33Z-
dc.date.available2009-01-28T16:01:33Z-
dc.date.issued2005en_US
dc.identifier.urihttp://hdl.handle.net/10419/19625-
dc.description.abstractIn recent years, a number of papers have established a new empirical regularity. Stocks of distressed firms vastly underperform those of financially healthy firms. It is not necessary to attribute the negative excess returns of distressed firms to inefficient or irrational markets. We show that negative excess returns are the equilibrium outcome when a subset of participants is able to draw returns "in kind" from distressed companies. For firms close to bankruptcy, non-cash returns to ownership will be the dominant form of return to equity. If markets expect a contest for control, these returns will show up in stock valuation. The governance problem described here creates a link between the financial position of a firm and real allocation that may amplify macroeconomic real or financial shocks.en_US
dc.language.isoengen_US
dc.relation.ispartofseriesDiscussion paper Series 1 / Volkswirtschaftliches Forschungszentrum der Deutschen Bundesbank 2005,40en_US
dc.subject.jelG12en_US
dc.subject.jelG14en_US
dc.subject.jelG33en_US
dc.subject.jelG34en_US
dc.subject.ddc330en_US
dc.subject.keywordstock market anomaliesen_US
dc.subject.keyworddefault risken_US
dc.subject.keywordprivate benefitsen_US
dc.subject.keywordmoral hazarden_US
dc.subject.keywordlimited liabilityen_US
dc.subject.stwKrisenmanagementen_US
dc.subject.stwZahlungsunfähigkeiten_US
dc.subject.stwBörsenkursen_US
dc.subject.stwKapitalertragen_US
dc.subject.stwKreditrisikoen_US
dc.subject.stwMoral Hazarden_US
dc.subject.stwTheorieen_US
dc.titleA "wreckers theory" of financial distressen_US
dc.typeWorking Paperen_US
dc.identifier.ppn504774662en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:bubdp1:4234-
Appears in Collections:Discussion Paper Series 1: Economic Studies, Deutsche Bundesbank

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