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Past studies document large court valuation errors in Chapter 11 bankruptcy, which are often attributed to the lack of transparent market prices of the debtor’s securities.
We document that the introduction of mandated public dissemination of over-the-counter corporate bond transactions through the TRACE platform has substantially reduced those misvaluations and virtually eliminated large wealth transfers between different claimants. The effects of dissemination are most pronounced for firms with fulcrum securities, which are actively traded around the court valuation dates and which receive a large proportion of the post-emergence equity; dissemination has no impact when prices are stale.
Using a sample of commercial aircraft transactions, the paper decomposes the raw fire sale discount on sales of aircraft by distressed airlines into...
We address a puzzle whereby lending marketplaces, aimed at directly connecting retail lenders and borrowers, retreat from auctions and take on the role...
This paper describes different forms of ownership across countries and how these forms influence the way companies are governed. In most stock markets...