Stock price reaction to an arrangement approval in restructuring proceedings – the case of Poland-Reference-Cited by-同舟云学术

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

Published:2022-09-01 Issue:3 Volume:58 Page:279-298
ISSN:2543-5361
Container-title:International Journal of Management and Economics
language:en
Short-container-title:

Author:

Prusak Błażej¹^ORCID,Potrykus Marcin¹^ORCID

Affiliation:

1. Faculty of Management and Economics , Gdańsk University of Technology , Gdańsk , Poland .

Abstract

Abstract 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.

Publisher

Walter de Gruyter GmbH

Link

https://www.sciendo.com/pdf/10.2478/ijme-2022-0014

Reference101 articles.

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