We examine bankruptcy within business groups. Groups have incentives to support financially distressed subsidiaries as the bankruptcy of a subsidiary may impose severe costs on the group as a whole. In several countries around the world, bankruptcy courts often “pierce the corporate veil”...

Using a large sample of business groups from more than one hundred countries around the world, we show that group information matters for parent and subsidiary default prediction. Group firms may support each other when in financial distress. Potential group support represents an off-balance...

<heading id="h1" level="3" format="inline" implicit="no">Abstract: </heading>This study uses <link rid="b32">Ohlson's (1995</link> and <link rid="b34">2001</link>) accounting-based equity valuation model to structure tests of four explanations for the anomalously positive pricing of dividends reported by <link rid="b36">Rees (1997)</link> and <link rid="b16">Fama and French (1998)</link>. First, we find that dividends are not simply a proxy for...

This paper employs Ohlson's (1995, 1998) accounting based equity valuation model to structure an empirical assessment of the pricing of dividends in stock prices. We address two questions. First, to what extent does the pricing of dividends reflect Modigliani and Miller?s (1958, 1961) one-to-one...