Valuation of Bankrupt Firms

By Stuart C. Gilson, Edith S. Hotchkiss, Richard S. Ruback. 2000

246 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/61b1bce7fa1a3246a0cc6c545a9318285677864f

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Citations in the corpus

Investment and the Weighted Average Cost of Capital (2016, unknown): “Kaplan and Ruback (1995) study a sample of high leverage transactions between 1983 and 1989, and Gilson, Hotchkiss, and Ruback (2000) study a sample of firms in bankruptcy reorganization.”
A Market-Based Study of the Cost of Default (2012, background): “…empirical estimates of distress costs, the effect of industry conditions has been studied either for particular industries, such as airlines (Pulvino (1998)), or indirectly, by 23For bankrupt firms, Gilson, Hotchkiss, and Ruback (2000) find that signals about firm value are unbiased, but noisier.”
Where do merger gains come from? Bank mergers from the perspective of insiders and outsiders (2001, methodology): “In the spirit of recent work by Kaplan and Ruback (1995) and Gilson et al. (2000) , we estimate the present value of the incremental earnings that management expects from the merger.”
Bankruptcy and the Resolution of Financial Distress (2008, background): “Unlike Gilson et al. (1990), however, Franks and Torous do not find that firms restructuring out-of-court have a greater proportion of bank debt.”
The price of corporate liquidity: Acquisition discounts for unlisted targets (2007, methodology): “…targets to average trading multiples for all comparable publicly traded firms) that has been used and discussed extensively in the literature (Boatsman and Baskin, 1981; Alford, 1992; Berger and Ofek, 1995; Kaplan and Ruback, 1995; Kim and Ritter, 1999; Gilson, Hotchkiss, and Ruback, 2000).”
Equity valuation, production, and financial planning: A stochastic programming approach (2006, background): “Among them, Lederer and Singhal (1994) consider joint financing and technology choices when making manufacturing investments and show that considerable value can be added to investments through financing decisions.”
Multiples Used to Estimate Corporate Value (2002, background): “Other studies, including Kaplan and Ruback (1995), Kim and Ritter (1999), and Gilson, Hotchkiss, and Ruback (2000) applied DCF and various multiples to value rather narrow subsets of companies, such as those that operate in bankruptcy or carry out initial public offerings (IPOs).”
Valuation Approaches and Metrics: A Survey of the Theory and Evidence (2007, methodology): “Gilson et al. (1998) use the compressed APV approach to value bankrupt firms that are reorganized and conclude that while the approach yields unbiased estimates of value, the valuation errors remain large.”