Contagion and competitive intra-industry effects of bankruptcy announcements: an empirical analysis

Article Abstract:

A bankruptcy declaration had a contagion and a competitive effect on other companies in the same industry, and the competitive effect dominated in those industries where leverage and the degree of competition were low. The contagion effect, or wealth loss, was felt by companies with cash flow features similar to those of the bankrupt company, because the bankruptcy declaration imparted information regarding the present value of cash flow for these companies, while the competitive effect, or wealth gain, was felt by competitors because the bankruptcy declaration imparted information regarding the competitive positions of companies in the bankrupt company's industry.

Finance, Influence, Business enterprises, Bankruptcy

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Ownership concentration and corporate performance in the Czech Republic

Article Abstract:

In the analysis of 706 companies in Czechoslovakia from 1992 to 1997, it was found that in transition and market economies, more concentrated ownership leads to better financial performance and worker productivity. This contradicts the significance of mass privatization, wherein shares are distributed to a large number of investors, since investors would be given little leeway to exercise their ownership. Evidence also point to foreign strategic investors as influential to the improvement of company performance.

Czechoslovakia

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The separation of ownership and control in East Asian Corporations

Article Abstract:

Issues relating to ownership and control are examined for nine countries in East Asia.

East Asia

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