Abstract
I investigate whether self-serving managers in financially distressed firms influence a firm's decision on the choice of debt restructuring method. 1 show that there is a non-linear relationship between managerial ownership and the probability of Chapter 11 filing. I find that distressed firms are more likely to choose Chapter 11 with the increase of managerial ownership when managerial ownership is in the 5% - 25% range. I also find a significant curvilinear relation between managerial ownership and the probability of Chapter 11. My results are consistent with the hypothesis that managerial ownership plays a significant role in corporate decisions.
| Original language | English |
|---|---|
| Pages (from-to) | 105-114 |
| Number of pages | 10 |
| Journal | Journal of Economics and Finance |
| Volume | 30 |
| Issue number | 1 |
| DOIs | |
| State | Published - 1 Jan 2006 |
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Do self-serving managers choose Chapter 11 filing over out-of-court restructuring? / Kim, Dong-Kyoon.
In: Journal of Economics and Finance, Vol. 30, No. 1, 01.01.2006, p. 105-114.Research output: Contribution to journal › Article › Research › peer-review
TY - JOUR
T1 - Do self-serving managers choose Chapter 11 filing over out-of-court restructuring?
AU - Kim, Dong-Kyoon
PY - 2006/1/1
Y1 - 2006/1/1
N2 - I investigate whether self-serving managers in financially distressed firms influence a firm's decision on the choice of debt restructuring method. 1 show that there is a non-linear relationship between managerial ownership and the probability of Chapter 11 filing. I find that distressed firms are more likely to choose Chapter 11 with the increase of managerial ownership when managerial ownership is in the 5% - 25% range. I also find a significant curvilinear relation between managerial ownership and the probability of Chapter 11. My results are consistent with the hypothesis that managerial ownership plays a significant role in corporate decisions.
AB - I investigate whether self-serving managers in financially distressed firms influence a firm's decision on the choice of debt restructuring method. 1 show that there is a non-linear relationship between managerial ownership and the probability of Chapter 11 filing. I find that distressed firms are more likely to choose Chapter 11 with the increase of managerial ownership when managerial ownership is in the 5% - 25% range. I also find a significant curvilinear relation between managerial ownership and the probability of Chapter 11. My results are consistent with the hypothesis that managerial ownership plays a significant role in corporate decisions.
UR - http://www.scopus.com/inward/record.url?scp=77951892760&partnerID=8YFLogxK
U2 - 10.1007/BF02834278
DO - 10.1007/BF02834278
M3 - Article
VL - 30
SP - 105
EP - 114
JO - Journal of Economics and Finance
JF - Journal of Economics and Finance
SN - 1055-0925
IS - 1
ER -