Conflicts of Interest and Market Illiquidity in Bankruptcy Auctions: Theory and Tests

By Per Strömberg. 2000

237 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/8bc4dad6a848cca6d8708c884931f0dddcb862ce

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Citations in the corpus

Liquidation Values and the Credibility of Financial Contract Renegotiation: Evidence from U.S. Airlines (2008, unknown): “In order to assess the credibility of renegotiation, we follow Bergman and Callen (1991) 3 Electronic copy available at: https://ssrn.com/abstract=969404 in explicitly modeling the renegotiation process between the firm and its liability holders.3”
Fire Sales in Finance and Macroeconomics (2011, unknown): “In countries that rely on Chapter 7–style liquidations, such as Sweden, the original lenders to firms finance the liquidation bids, often by the existing management, thus avoiding fire sales (Stromberg, 2000).”
Financial Distress and Bank Restructuring of Small to Medium Size UK Companies (2005, unknown): “Stromberg (2000), using a similar sample, finds that many of the auctions result in sales to existing management at the expense of the junior creditors.”
Understanding the Recovery Rates on Defaulted Securities (2003, methodology): “Third, we have included in the specification Median Industry Q. Median 16See, for example, Stromberg (2001) for the use of Quick ratio, and Asquith, Gertner and Scharfstein (1994) and Andrade and Kaplan (1998) for the use of Interest Coverage ratio.”
Does Industry-Wide Distress Affect Defaulted Firms? Evidence from Creditor Recoveries (2007, background): “As in Berger, Ofek, and Swary (1996) and Stromberg (2001), we define Specific Assets of a firm as the book value of its machinery and equipment divided by the book value of total assets.”
Institutions, ownership structures, and distress resolution in China☆ (2013, background): “On the administrative side, governments in emerging markets tend to exert a greater influence on markets and firms, and the quality of bureaucrats cannot be assumed to be high (Shleifer and Vishny, 1994).”
Access to Collateral and Corporate Debt Structure: Evidence from a Natural Experiment (2012, unknown): “Although the mandatory nature of the SARFAESI Act does not allow firms to explicitly opt out of the law,4 as such a contract would not be enforced in court, firms can undo the effect of the law through other means (if they are 2 See also Strömberg (2000), Pulvino (1998), and Povel (1999).”
Comparative Financial Systems: A Survey (2001, background): “Stromberg (2000) finds that, in practice, cash auctions in Sweden work very like reorganization procedures.”
Do Bankruptcy Codes Matter? A Study of Defaults in France, Germany, and the U.K. (2008, unknown): “Most available evidence on financial distress comes from large US corporations.2 Studies of other jurisdictions include papers on bankruptcy auctions in Finland by Ravid and Sundgren (1998), and in Sweden by Strömberg (2000) and Thorburn (2000).”
The Costs of Bankruptcy: Chapter 7 Liquidation versus Chapter 11 Reorganization (2006, background): “Stromberg (2000) also finds that asset fire sales and resales to management can lead to striking inefficiencies in the cash auction system.”