other partner files for bankruptcy. We find that the non-bankrupt strategic alliance partners, on average, experience a … negative stock price reaction around their partner firm's bankruptcy filing announcement. This negative effect is strongest for …

) in the two years surrounding bankruptcy filings by industry rivals. This industry-specific contagion is particularly … severe in the middle of industry bankruptcy waves. Furthermore, this contagion in loan spreads is mitigated in concentrated … industries, consistent with the hypothesis and evidence in Lang and Stulz (1992) that bankruptcy filings in concentrated …