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Bankruptcy Abuse Prevention and Consumer Protection Act: Friend or Foe?
| Content Provider | Semantic Scholar |
|---|---|
| Author | Coelho, L. M. S. |
| Copyright Year | 2010 |
| Abstract | In 2005, the U.S. Bankruptcy Law suffered major adjustments with the passing of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). In this paper, I explore the market pricing implications of this change. There is evidence that, in the pre-bankruptcy period, the risk-adjusted stock price performance is very similar whether the case is initiated under the BAPCPA or its predecessor, the Bankruptcy Reform Act of 1978. The market reaction to the formal announcement of bankruptcy is, however, much more negative after the enactment of BAPCPA. My results stress the interaction between law and finance and have important consequences for both investors and managers, which I discuss in the body of the paper. |
| File Format | PDF HTM / HTML |
| DOI | 10.2139/ssrn.1747684 |
| Alternate Webpage(s) | http://www.cefage.uevora.pt/en/content/download/3089/41152/version/1/file/BAPCPA_friend+of+foe_CEFAGE.pdf |
| Alternate Webpage(s) | https://doi.org/10.2139/ssrn.1747684 |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |