Description

• Title:
  The Competitors’ Response to a Bankruptcy Filing Announcement Made by a Stock-Listed Company Depending on Sector Characteristics
• Creator:
  Krzeczewska, Olga
• Contributor:
  University of Łódź. Faculty of Economics and Sociology 39 Rewolucji 1905 r. St., 90-214 Łódź, Poland;
  olga.krzeczewska@uni.lodz.pl
• Description:
  The main aim of the article is to determine how the bankruptcy filing announcement of a stock-listed company affects the market valuation of its competitors, depending on the sector characteristic. An event study was conducted on the example of returns to shares of companies comprised in the WIG index and operating in 9 sectors. It is indicated that the bankruptcy filing announcement is quickly (within one day) incorporated into the share prices of competitors of the announcing firm. It is confirmed that the direction of market reaction toward share prices of competitors is differentiated by the characteristics of the sector. Averaged results show that the competitive effect occurs in the sectors with a high level of concentration, while the contagion effect is noted in sectors with low concentration. Companies from sectors characterized by low leverage experience the competitive effect. No information transfer was found for a group of companies in sectors characterized by high leverage.
• Object availability:
  free access
• Rights:
  Uznanie autorstwa-Użycie niekomercyjne 4.0 Międzynarodowe;
  http://creativecommons.org/licenses/by-nc/4.0
• Date:
  2021.12.14;
  2021
• Type:
  Article
• Language:
  English
• Format:
  application/pdf
• Publisher:
  Uniwersytet Marii Curie-Skłodowskiej w Lublinie
• Relation:
  Annales Universitatis Mariae Curie-Skłodowska, sectio H – Oeconomia;55;
  1
• Subject:
  contagion effect;
  competitive effect;
  information transfer;
  bankruptcy filing;
  event study
• Identifier:
  Krzeczewska, O. (2021). The Competitors’ Response to a Bankruptcy Filing Announcement Made by a Stock-Listed Company Depending on Sector Characteristics. Annales Universitatis Mariae Curie-Skłodowska, sectio H – Oeconomia, Vol. 55, No. 1.;
  0459-9586;
  http://hdl.handle.net/11089/39997 ;
  10.17951/h.2021.55.1.31-40
• Data provider:
  Repozytorium Uniwersytetu Łódzkiego
• Can I use it?:
  seek permission
• Type:
  image