Date of Award

Spring 2017

Degree Type

Honors Project

Additional Department

Economics

Department

Finance

First Advisor

Elizabeth Cooper

Second Advisor

Vincent Kling

Abstract

This study seeks to demonstrate the relationship between firm-specific variables and their probability of emerging from Chapter 11 bankruptcy prior to and after the 2008 financial crisis. Using univariate analysis and multivariate logistic regressions, this study models a firm's probability of emerging from bankruptcy using a combination of ten firm-specific variables. The findings of this study show that the amount of time a firm spends in bankruptcy as well as whether the firm replaced their CEO during the bankruptcy process serve as indicators for bankruptcy emergence in a pre-crisis sample. Indicators of bankruptcy emergence were not found in the post-crisis sample which suggests that macroeconomic factors have a larger effect on bankruptcy emergence in a post-financial crisis climate.

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