Chapter 11 bankruptcy is a controversial outlet for financially distressed firms to reorganize their debts and assets in order to compete in the economy. This paper will analyze the relative financial performance of firms that emerged from Chapter 11 bankruptcy from 2004-2007. The firms that emerged from bankruptcy in 2004 consist of only firms that have a before bankruptcy 10-K from the years 2002 and beyond. In the model, relative firm performance is measured by a modified Z-Score that consists of four financial performance ratios. This paper demonstrates that firms perform financially better after emerging from Chapter 11 bankruptcy. Furthermore, it can be seen that the primary cause of this improved performance is the change in a firm’s asset turnover ratio, which is an efficiency measure.
Stoffer, Joseph, "Chapter 11 Bankruptcy: An Analysis of the Relative Financial Performance of Firms Post-Bankruptcy" (2014). Senior Independent Study Theses. Paper 5857.
Econometrics | Finance | Other Economics
Bachelor of Arts
Senior Independent Study Thesis
© Copyright 2014 Joseph Stoffer