Do Voluntary, Involuntary and Prepackaged Bankruptcies Affect Shareholder Wealth Differently?
By: John Theis, Ph.D., J.D. & Paul Haensly, Ph.D. Prior studies using voluntary and involuntary filings show bankruptcies drastically reduce shareholder returns. This study compares shareholder costs for conventional voluntary, prepackaged voluntary, and involuntary filings. Event study results show conventional voluntary filings with large, significant, and negative abnormal returns at filing and the first distress announcement cost shareholders the most. Prepackaged and involuntary filings have significantly smaller negative abnormal returns at filing than voluntary filings. Common Mistakes in the Statistical Analysis of Credit Decisions By: John K. Ford, D.B.A. The modern science of probability and statistics provides many tools of considerable value in credit analysis. This is not surprising since statistics and credit analysis have much in common. For example, a primary concern in statistics is deriving techniques for selecting a sample with certain attributes including restrictio
