Corporate bankruptcy and managers' self-serving behavior

Loderer, Claudio F.; Sheehan, Dennis P. (1989). Corporate bankruptcy and managers' self-serving behavior. Journal of Finance, 44(4), pp. 1059-1075. Wiley 10.1111/j.1540-6261.1989.tb02639.x

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We investigate whether insiders of bankrupt firms hold less stock or reduce their stockholdings compared to what we observed for insiders of similar firms that do not go bankrupt. We find little evidence of such time-series and cross-sectional differences in spite of the fact that the stock value of bankrupt firms falls by more than ninety percent in the five years preceding bankruptcy. One implication of our results is that the amount of stock owned and the magnitude of the trades undertaken by corporate insiders of both bankrupt and nonbankrupt firms appear to provide no information about firm value.

Item Type:

Journal Article (Original Article)

Division/Institute:

03 Faculty of Business, Economics and Social Sciences > Department of Business Management > Institute of Financial Management

UniBE Contributor:

Loderer, Claudio

Subjects:

300 Social sciences, sociology & anthropology > 330 Economics

ISSN:

0022-1082

Publisher:

Wiley

Language:

English

Submitter:

Karin Dolder

Date Deposited:

30 Jan 2014 13:46

Last Modified:

08 Dec 2014 23:38

Publisher DOI:

10.1111/j.1540-6261.1989.tb02639.x

BORIS DOI:

10.7892/boris.39543

URI:

https://boris.unibe.ch/id/eprint/39543

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