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dc.contributor.authorHo, Chun-Yu
dc.contributor.authorMcCarthy, Patrick
dc.contributor.authorYang, Yi
dc.contributor.authorYe, Xuan
dc.date.accessioned2013-02-08T15:47:27Z
dc.date.available2013-02-08T15:47:27Z
dc.date.issued2012-12
dc.identifier.citationHo, Chun-Yu; McCarthy, Patrick; Yang, Yi ; Ye, Xuan. J Empirical Economics. 10.1007/s00181-012-0661-6 "Bankruptcy in the pulp and paper industry: market’s reaction and prediction" http://dx.doi.org/10.1007/s00181-012-0661-6 Springer-Verlag 2012-12-01en_US
dc.identifier.issn1435-8921
dc.identifier.urihttp://hdl.handle.net/1853/46156
dc.description.abstractThis paper examines North American pulp and paper company bankruptcies that occurred between 1990 and 2009. We demonstrate that shareholders suffer substantial losses (37%) during the month a bankruptcy occurs. Encouragingly, we show that financial ratios are useful in predicting firm failure and that failed firms are less profitable, more liquidity constrained and higher in debt leverage. Using a binary logit model in the spirit of Ohlson (1980), we predict financial distress for pulp and paper firms one to two years ahead of the bankruptcy. We also adapt and re-estimate the empirical model on a sample of pulp and paper firms and perform insample and out-of-sample forecasts. For the out-of-sample analysis, our re-estimated Ohlson models correctly predict 93% of bankruptcy and non-bankruptcy outcomes.en_US
dc.language.isoen_USen_US
dc.publisherSpringeren_US
dc.subjectForest productsen_US
dc.subjectPulp and paperen_US
dc.subjectIndustry studiesen_US
dc.subjectBankruptcyen_US
dc.subjectCorporate financeen_US
dc.titleBankruptcy in the pulp and paper industry: market’s reaction and predictionen_US
dc.typePost-printen_US
dc.contributor.corporatenameGeorgia Institute of Technology. School of Economicsen_US
dc.identifier.doi10.1007/s00181-012-0661-6
dc.embargo.termsnullen_US


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