There is a wide body of literature in corporate finance that examines the tradeoffs between liquidation and re-organization for creditors in financially distressed firms (Kahl (2002), Hotchkiss (1995), Gertner and Scharfstein (1991)). We incorporate salient elements from this literature into a...

New bankruptcy laws which give greater protection to creditors were signed into law in Brazil on Feb 9, 2005. The paper tests whether greater protection to creditors led to growth in capital markets in Brazil as predicted by La Porta, Lopez-de-Silanes, Shleifer and Vishny (1997, 1998, 2002 and...

New bankruptcy laws which give greater protection to creditors were signed into law in Brazil on Feb 9, 2005. The paper tests whether greater protection to creditors led to growth in capital markets in Brazil as predicted by La Porta, Lopez-de-Silanes, Shleifer and Vishny (1997, 1998, 2002 and...

We study the pricing of Argentine ADRs during and after the transition of the Argentine economy from a pegged exchange rate to a freely floating exchange rate regime. We document a discount of 30% between the dollar denominated price of the ADR and the peso denominated price of its local...

Two conflicting behavioral models, under-reaction and over-reaction, have been proposed as explanations for the long-run abnormal return patterns following a variety of corporate events. We test hypotheses that distinguish between these two behavioral models for four corporate events, seasoned...