Empirical Study on the Corporate Reorganization Process in the U.S.

This book studies three issues regarding corporate reorganization under Chapter 11 of the U.S. Bankrutpcy Code: continuation bias, delay, and CEO turnover. The first chapter investigates whether there is a bias towards letting firms with larger number of employees to avoid liquidation and reorganize instead. The second chapter investigates the hypothesis that information asymmetry can be a determining factor of the length of the bankruptcy negotiation. The last chapter investigates whether CEOs of financially distressed firms are less likely to be replaced once the firms file for the corporate reorganization in the U.S.