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The purpose of this paper is to empirically investigate the stock return and operating performance of the firms which emerged from bankruptcy during 1992‐2006 in India.

The paper uses single factor model and matching firm approach to assess the stock return performance. It employs the level as well as change expectation models to examine the operating performance.

The paper shows that the sample firms, after emerging from bankruptcy, report declining stock return as well as operating performance.

Findings of the study raise doubts over the efficiency of Indian corporate bankruptcy reorganizing mechanism.

Apparently, no previous study examined the post‐bankruptcy performance of the firms, particularly in the context of emerging markets, which are plagued with the principal agent problems aggravated by owner managers. Given the potential vulnerability of the bankruptcy process for the inefficient wealth transfers among various claim holders, this paper provides useful insights into the same.

This research seeks to investigate the role of key corporate governance mechanisms in determining a firm's post‐bankruptcy performance following reorganisation.

The study is based on agency theory and uses a unique sample of 111 filing companies whose reorganisation plans have been confirmed by the Thai Central Bankruptcy Court during the period 1999‐2002.

The results indicate that monitoring and incentive mechanisms are significant determinants of a firm's post‐bankruptcy performance. The key monitoring mechanism is ownership concentration, measured by shares held by the largest shareholder, whereas the critical incentive mechanisms are cash compensation and percentage of common shares held by the plan administrator. The results indicate that these mechanisms can mitigate agency problems in previously insolvent companies and increase post‐bankruptcy performance over a three year period.

The study is timely given that many organisations are facing rebuilding programs following the impact of the global financial crisis. Prior research in Thailand and elsewhere has not measured bankruptcy reorganisation outcomes in terms of the difference of actual financial performance to predicted performance and in relation to the governance factors of the reorganisation process. Neither has this aspect been considered within an agency theory framework. This provides a unique opportunity to consider these variables based on the theoretical framework of agency theory and to evaluate the importance of governance mechanisms in reorganisation proceedings.

This paper develops a theory regarding the determinants of post-bankruptcy performance of healthcare firms. Specifically examined are the potential effects of strategic change (i.e. refocusing), organizational size, slack and munificence on post-bankruptcy performance. It is theorized that bankrupt healthcare firms that refocus have greater post-bankruptcy performance than all other firms. It is also theorized that greater organizational size, slack, and munificence enhance post-bankruptcy performance. The theory developed in this paper highlights the benefits of refocusing the diversified healthcare firm, the liabilities associated with diversification in the healthcare industry, and organizational ecology theories and perspectives regarding organizational size, slack, and munificence. In addition, this paper aims to provide richer insight into our understanding of the post-bankruptcy performance of healthcare firms.

This research seeks to determine the success of turnaround strategies adopted by corporations in Thailand following post‐bankruptcy reorganization plans approved by the Thai Central Bankruptcy Court.

The study uses a sample of 101 companies whose reorganization plans have been confirmed by the Thai Central Bankruptcy Court in the period 1999‐2002, with performance measures to 2005.

The results indicate that over a three‐year reorganization period successful companies were found to be most likely to adopt cost and expense reduction, company size reduction and disposal of non‐core assets while operational strategies aimed at reconfiguring internal operations and systems were not likely to be associated with successful companies.

The data suggests, subject to limitations, the selection of restructuring methods may differ between those companies which successfully reform and those which do not. Companies pursuing successful turnaround strategies were found most likely to adopt cost and expense reduction, company size reduction and disposal of non‐core assets as significant operational strategy.

Prior research in Thailand has not investigated turnaround strategy of successful and unsuccessful companies. The result of the study has practical significance as it provides information of use to regulators, management, lenders, creditors, practitioners, and investors. The prevailing economic conditions worldwide suggest the need for replication and continual refinement of research in this area, not only in Thailand but elsewhere.

The purpose of this paper is to examine analyst followings of firms starting from one year prior to their filing for Chapter 11 and as the firms progress through bankruptcy proceedings with a focus on firms receiving “Hold” or better recommendations. The authors attempt to answer questions such as what the common characteristics of the firms receiving stronger than expected recommendations one year prior to filing for bankruptcy reorganization or while in bankruptcy are, and how the market reacts to the issuance of stronger ratings for those firms.

The authors design various regressions and apply them to a total of 2,754 sell-side analyst recommendations and 325 firms that are either approaching bankruptcy filing or in the process of reorganizing. In each analysis, the authors control for several firm and performance characteristics.

The authors find that the probability of securing stronger ratings is higher for small firms and for those followed by a greater number of analysts than for large firms and firms followed by fewer analysts. The market becomes more skeptical of optimistic evaluations closer to the date of bankruptcy filing (perhaps reflecting some anticipation) and reacts more positively to rating upgrades issued during bankruptcy protection than to the upgrades issued before the bankruptcy filing.

The conclusions are based on the analysis of analyst recommendations issued shortly before Chapter 11 filings and during bankruptcy proceedings. The conclusions could be strengthened by further analysis of firms’ post-bankruptcy recovery and performance and examination of analyst recommendations issued for the firms after they emerge from Chapter 11..

Analyst security ratings that are more positive than expected are perhaps the result of superior expertise and access to private information. During bankruptcy proceedings, when information disclosure is limited, investors could greatly benefit from reports issued by security analysts.

This study contributes to the literature in a number of ways. First, the authors contribute to the literature on the analyst ratings of firms in distress by considering the period between bankruptcy filing and emergence, while the existing literature provides analysis of pre-bankruptcy recommendations and forecasts. Second, the authors focus on better than expected ratings rather than all types of ratings as the firms approach bankruptcy filings and proceed through reorganization. Finally, they evaluate how investors react to stronger than expected analyst ratings.

The purpose of this paper is to investigate if the volatility of stock prices in the days surrounding the Chapter 11 bankruptcy process predicts a firm’s likelihood to successfully restructure and emerge from bankruptcy.

The authors use a sample of Chapter 11 cases between 1980 and 2016 that have available stock price data surrounding the bankruptcy filing dates. Following Goyal and Wang (2013), the KMV–Merton model is utilized to estimate the probability that a firm successfully emerges from its restructuring process. In order to interpret the market’s assessment about a firm, the authors use the analogy of a European call option to derive the assessment of the firm’s prospects as the probability that it will emerge from bankruptcy. This estimated probability of emergence is compared to actual outcomes of bankruptcy cases and tested for significance using various regression techniques.

This study exploits the information found in stock prices surrounding the bankruptcy process and finds that volatility after, but not before, filing for bankruptcy significantly predicts a firm’s likelihood to emerge. In addition, the market-based probability of emergence has better predictive power on the recovery rates of unsecured creditors than measures based on financial statements.

Predictors of bankruptcy have been extensively studied by scholars over the decades, with early studies focusing on accounting-based measures and recent studies incorporating market-driven variables. However, in recent years, studies have begun to assess bankrupt firms’ ability to reorganize and successfully emerge from bankruptcy. This study contributes to the recent literature investigating market-based predictors of successful emergence.

The purpose of this paper is to investigate the relationship between voluntary disclosure of a statement of management's responsibility for the financial reports (MRF) and earnings management, both accrual and real earnings management, in firms listed on the Stock Exchange of Thailand (SET).

The samples in this study are selected from listed companies on the SET in the year 2009. The multiple regression are used to test hypotheses.

The results show that the inclusion of a MRF has no association with both discretionary accrual and real earnings management activities (i.e. sales manipulation, a decrease in discretionary expenditures, and overproduction). The findings from the study reveal that firms with or without the MRF manipulate their earnings in a similar manner.

The sample for the study includes Thai listed firms in the year 2009 only. The small sample size may limit the validity of generalizations from these conclusions.

Based on the results, the regulators will know that the voluntary disclosure of management responsibilities on the financial reports is an ineffective tool to control earnings management.

Like Sarbanes-Oxley Act 2002, a disclosure of management responsibilities on the financial reports should be required by the Securities and Exchange Commission of Thailand.

Investors will know that firms with or without the MRF manipulate their earnings in a similar manner. The voluntary disclosure of an MRF in Thailand does not guarantee earnings quality.

The purpose of this paper is to examine the impact of superior IT capability on financial performance of firms in the chemicals and chemical products industry in India.

Financial performance of 28 firms with superior IT capability has been compared with benchmark over a period of six years.

This research has five important findings for the chemicals and chemical products industry in India: there is positive association between superior IT capability and return on sales (ROS); firms with superior IT capability are able to earn higher margins on their products; asset turn of firms with superior IT capability is less than benchmark; capital markets give higher valuation to firms with superior IT capability; and this superior performance in terms of better ROS and higher capital market valuation is sustainable over a period of time.

This is the first empirical study that has analysed the influence of IT capability on financial performance of firms in a specific industry in the context of India.