TY  - RPRT
A1  - Hackbarth, Dirk
A1  - Haselmann, Rainer
A1  - Schoenherr, David
T1  - Online appendix to Financial distress, stock returns, and the 1978 Bankruptcy Reform Act
N2  - We study the effect of weakening creditor rights on distress risk premia via a bankruptcy reform that shifts bargaining power in financial distress toward shareholders. We find that the reform reduces risk factor loadings and returns of distressed stocks. The effect is stronger for firms with lower firm-level shareholder bargaining power. An increase in credit spreads of riskier relative to safer firms, in particular for firms with lower firm-level shareholder bargaining power, confirms a shift in bargaining power from bondholders to shareholders. Out-of-sample tests reveal that a reversal of the reform's effects leads to a reversal of factor loadings and returns.
KW  - financial distress
KW  - law and finance
KW  - shareholder recovery
KW  - stock returns
Y1  - 2014
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/37087
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-370877
UR  - http://ssrn.com/abstract=2517596
N1  - The paper "Financial Distress, Stock Returns, and the 1978 Bankruptcy Reform Act" to which these Appendices apply is available at the following URL: http://ssrn.com/abstract=1787627
IS  - October 31, 2014
EP  - 2
ER  -