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.


Sell, John

Second Advisor

Duffus, LuAnn


Business Economics


Econometrics | Finance | Other Economics

Publication Date


Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis



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