Open Daily: 10am - 10pm | Alley door pickup 10am - 7pm 3038 Hennepin Ave Minneapolis, MN
612-822-4611

  • Open Daily: 10am - 10pm
    Alley-side Pickup: 10am - 7pm

    3038 Hennepin Ave Minneapolis, MN
    612-822-4611

Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
The Aftermath of Chapter 11 Bankruptcy

The Aftermath of Chapter 11 Bankruptcy

Serra Coelho, Luís M.

Paperback

Business General

ISBN10: 620947781X
ISBN13: 9786209477812
Publisher: LAP Lambert Academic Publishing
Published: Feb 24 2026
Pages: 212
Weight: 0.64
Height: 0.48 Width: 6.00 Depth: 9.00
Language: English
Finance scholars disagree on how real-world financial markets function. According to the traditional finance paradigm, market prices, on average, reflect fundamental value. In contrast, behavioural finance theory suggests that this may not be the case, as investors are not fully rational and arbitrage is both risky and costly. This book contributes to the debate by examining how the U.S. equity market responds to bankruptcy announcements-the most extreme events in the corporate domain. The findings can be summarized in three key points. First, on average, the market does not fully incorporate the impact of a bankruptcy announcement in a timely manner. Second, limits to arbitrage help explain why this pricing anomaly persists even in the long run. Finally, the specific reason for filing under Chapter 11 has a significant impact on how the market reacts to the announcement. This book will be of interest to academics in bankruptcy and behavioural finance, as well as to institutional and individual investors trading securities of bankrupt firms.

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