Purpose – The aim of this paper is to investigate the effect of management earnings forecasts on the level of information asymmetry around subsequent earnings announcement. Design/methodology/approach – Employing the adverse selection cost method suggested by George et al., the paper...

This book was originally published by Westview Press, Boulder CO, 1995.

I investigate whether self-serving managers in financially distressed firms influence a firm’s decision on the choice of debt restructuring method. I show that there is a non-linear relationship between managerial ownership and the probability of Chapter 11 filing. I find that distressed firms...