bankruptcy and financial distress

One Hat Research LLC

LTL Management: The Third Circuit's View and the Financial Distress of Firms That File for Ch 11

In LTL Mgmt., LLC, the United States Court of Appeals for the Third Circuit reviewed its precedent and found a clear theme: "absent...

4 views

One Hat Research LLC

One-Year Return is a Powerful Bankruptcy Predictor

Prior work demonstrates that neither Altman Z-score nor Merton distance-to-default predict bankruptcy in unbalanced datasets. I show that...

4 views

One Hat Research LLC

Finding Distress Risk

Prior evidence suggests a puzzling absence of compensating returns to the common stocks of highly-distressed companies. I examine three...

4 views

One Hat Research LLC

Simple Bankruptcy Prediction (Altman Z Doesn't Work)

A simple ratio involving only stock-market capitalization and the face value of debt is a strong bankruptcy predictor when applied to...

4 views