Purpose – Conventional wisdom implies that firms manage earnings to maximize the wealth of the manager, the value of the firm and/or the amount of information in the market. The purpose of this paper is to offer an additional explanation. Design/methodology/approach – Using companies from...

Purpose – The purpose of this paper is to investigate the effect of bankruptcy announcements on the bankrupt firm's competitors' stock returns Design/methodology/approach – Starting with a sample of Chapter 11 bankruptcies from 1980 through 2008, the authors use event study methodology to...

Purpose – The purpose of this paper is to investigate the effect of bankruptcy announcements on the bankrupt firm's competitors' stock returns. Design/methodology/approach – Starting with a sample of Chapter 11 bankruptcies from 1980 through 2008, the authors use event study methodology to...