Short-term Price Reaction to Involuntary Bankruptcies Filed in Bad Faith: Empirical Evidence from Poland

Prusak, Błażej; Potrykus, Marcin

doi:10.35808/ersj/1720

Cited by 2 publications

(2 citation statements)

References 27 publications

(27 reference statements)

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“…Another study concerned the reaction of stock prices to involuntary bankruptcies filed by creditors in bad faith. The study revealed that information about these applications did not generate negative above-average returns in the short term [Prusak and Potrykus, 2020].…”

Section: Restructuring Proceedings In Poland and Literature On Restru...mentioning

confidence: 87%

Stock price reaction to an arrangement approval in restructuring proceedings – the case of Poland

Prusak

Potrykus

2022

International Journal of Management and Economics

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The study aims to empirically analyze the reaction of stock prices to the information about the conclusion and acceptance of a debtor–creditor arrangement under restructuring proceedings of companies listed on the stock exchange in Poland. The following main research hypothesis was verified: public disclosure of information about an arrangement conclusion and acceptance in restructuring proceedings results in above-average rates of return due to investments in the stocks of these entities in the short term. Three events were assessed: the public disclosure of information about the conclusion of a debtor–creditor arrangement (Event 1), its approval by a court (Event 2), and the decision becoming final (Event 3). The research method applied was the event study. Event 1 and Event 3 leads to an above-average and statistically significant increase in stock prices on the day of the event. In contrast, no statistically significant above-average rates of return accompanied Event 2.

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Section: Restructuring Proceedings In Poland and Literature On Restru...mentioning

confidence: 87%

Stock price reaction to an arrangement approval in restructuring proceedings – the case of Poland

Prusak

Potrykus

2022

International Journal of Management and Economics

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“…A market model was used to determine the abnormal return (AR) (Castro-Iragorri 2019), while MSCI's data ACWI Standard (Large + Mid Cap) index (MSCI 2021) was used as a benchmark. Eventually, AR rates were calculated using this formula (Prusak & Potrykus 2020):…”

Section: Methodology and Datamentioning

confidence: 99%

The Response of Selected Domestic Capital Markets on the Development of COVID-19 Pandemic – a Broader View

Potrykus

2023

Zesz. Nauk. UEK

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In markets where the first case of infection had already been recorded, the negative reaction of investors was greater than in markets where the first case had not yet been found. Implications / Recommendations: A small number of cases and high uncertainty about COVID-19 have a more substantial negative impact on investors than a high number of cases coupled with a better understanding of the pandemic. WHO announcements further contributed to the occurrence of stronger declines in countries in which people had already become infected by COVID-19. Contribution: The current study is the first of its kind, focusing not only on the first case of COVID-19, but also on other focal points of the evolving pandemic. The other aspects (month, WHO announcements) covered are also analysed from a different, broader view than in other studies.Article type: original article.

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Short-term Price Reaction to Involuntary Bankruptcies Filed in Bad Faith: Empirical Evidence from Poland

Cited by 2 publications

References 27 publications

Stock price reaction to an arrangement approval in restructuring proceedings – the case of Poland

Stock price reaction to an arrangement approval in restructuring proceedings – the case of Poland

The Response of Selected Domestic Capital Markets on the Development of COVID-19 Pandemic – a Broader View

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