Selected Publications

Chapter 11: Duration, Outcome, and Post-Reorganization Performance" with Diane K. Denis, Journal of Financial and Quantitative Analysis.

Measuring Distress Risk: The Effect of R&D Intensity" with Laurel Franzen and Timothy T. Simin, Journal of Finance.

"Inter-firm Linkages and the Wealth Effects of Financial Distress along the Supply Chain" with Michael Hertzel and Zhi Li and Micah Officer; Journal of Financial Economics.

Selected Publications

Financial Restructuring in Fresh Start Chapter 11 Reorganizations” with Randall Heron and Erik Lie, Financial Management, conditional acceptance April 8, 2009.

Abstract: We find that firms substantially reduce their debt burden in “fresh start” Chapter 11 reorganizations, yet they emerge with higher debt ratios than what is typical in their respective industries. While cross-sectional regressions reveal that post-reorganization debt ratios are more in-line with the predictions of the static-tradeoff theory, they also reveal that pre-reorganization debt ratios affect post-reorganization debt ratios. Collectively, these results suggest that impediments in Chapter 11 prevent firms from completely resetting their capital structures according to financial theory. Despite these impediments, we also find that firms with higher pre-filing debt levels are the ones that emerge the fastest, suggesting that it is quicker to remedy strictly financial distress than economic distress.