{"product_id":"the-aftermath-of-chapter-11-bankruptcy-von-luis-m-serra-coelho","title":"The Aftermath of Chapter 11 Bankruptcy","description":"\u003cp\u003eFinance scholars disagree on how real world  financial markets work. According to the traditional  paradigm in finance, on average, market prices  reflect fundamental value. Conversely, behavioural  finance theory suggests this may not be the case  since investors are not fully rational and arbitrage  is both risky and costly. This book adds to the  discussion by investigating how the U.S. equity  market deals with the announcement of bankruptcy,  the most extreme event in the corporate domain. My  results can be summarized around three key ideas.  First, on average, the market does not price the  full impact of a bankruptcy announcement in a timely  manner. Second, limits to arbitrage help explain why  such market pricing anomaly subsists even in the  longer-run. Finally, the specific reason for filing  for Chapter 11 seems to have a very significant  impact on how the market deals with the announcement  of bankruptcy. This book should be relevant for both  academics interested in the fields of bankruptcy and  behavioural finance and institutional and individual  investors who trade bankrupt firms'' securities.\u003c\/p\u003e\u003cdiv class=\"aw-variant-hidden-subtitle-div\" id=\"aw-variant-subtitle-9783844322651\"\u003e\u003ch3\u003eA Comprehensive Analysis\u003c\/h3\u003e\u003c\/div\u003e","brand":"Autorenwelt Shop","offers":[{"title":"Softcover - 9783844322651","offer_id":39495921139805,"sku":"9783844322651","price":79.0,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0940\/0622\/files\/d8e8a339-8831-4a93-9bfa-0984eaa71ddb.jpg?v=1737789506","url":"https:\/\/shop.autorenwelt.de\/products\/the-aftermath-of-chapter-11-bankruptcy-von-luis-m-serra-coelho","provider":"Autorenwelt Shop","version":"1.0","type":"link"}