Firm failure and managerial labor markets: evidence from Texas banking

Article Abstract:

A study on the ability of executives to find jobs after the failure of their firms was studied by using data from failed banks and banks that did not fail. The study was centered on the managerial labor markets' bias towards managers who come from failed organizations. Cross-sectional data from Texas banks were analyzed. Among the findings discovered were that executives from banks that were closed for causes beyond their control had good chances of finding employment. For managers of banks that did not fail, their reemployment prospects were connected to their bank's operational efficiency.

Commercial Banks, Commercial Banking, Research, Banking industry, Employment, Executives, Labor market

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Information problems, conflicts of interest, and asset stripping: Chapter 11's failure in the case of Eastern Airlines

Article Abstract:

The bankruptcy problem of Eastern Airlines demonstrates the negative effect of court-backed asset stripping on company value. Eastern Airlines' value declined by more than 50% due to court's failure to stop the company from undertaking destructive operations even it has already been established that it needs to be shut down. The experience undergone by the airline company emphasizes the need to undertake a bankruptcy process that will shield business firms from highly optimistic executives, wrong court rulings and creditor-related run.

Bankruptcy Law, Other Justice, Public Order, and Safety Activities, Scheduled Passenger Air Transportation, Air transportation, scheduled, Domestic Scheduled Air Service, Economic aspects, Finance, Airlines, Domestic airlines, Eastern Air Lines Inc.

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Banking market structure and financial stability: evidence from the Texas real estate crisis in the 1980s

Article Abstract:

Two hypotheses that competition reduces franchise value and reduced franchise value induces risk taking are tested using data on thrifts, a type of banking institution specializing in residential mortgage lending. The Texas real estate collapse in the 1980s used as a natural experiment and the supporting evidence for the both hypotheses found.

Texas, Analysis, Influence, Deregulation, Financial crises

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