Waseda Organizational and Financial Economics Seminar:
“Do Market Prices Improve the Accuracy of Court Valuations in Chapter 11?” (April 16)
講演者 / Speaker
FRANKS, Julian （Professor, London Business School）
日 時 / Date & Time
Monday, 16 April 2018, 16:30 – 18:00
会 場 / Venue
Rm. 816 on the 8th floor, Building #11, Waseda University
主 旨 / Outline
“Do Market Prices Improve the Accuracy of Court Valuations in Chapter 11?”
This paper shows that public dissemination of trading information for registered corporate bonds reduces valuation errors in Chapter 11 bankruptcy reorganizations by about half, virtually eliminating unintended wealth transfers between claimants and consequent violations of the absolute priority rule.
The impact of dissemination is significantly greater where alternative market-based indicators of firm valuation, such as analyst estimates or outside bids for the company’s assets are lacking, and significantly lower where hedge funds are among the debtor’s largest unsecured claimants.
The results suggest that the transparency of market prices helps improve the distributional efficiency of Chapter 11 bankruptcy and provide support for proposals to increase the availability of market-based signals to aid the valuation process.
プログラム / Schedule
16:30～16:35 Opening Remarks （MIYAJIMA, Hideaki (Director, WIAS / Professor, Waseda University)）
16:35～17:45 Presentation
17:45～17:55 Question-and-answer session
17:55～18:00 Concluding Remarks（MIYAJIMA, Hideaki ）
対 象 / Prospected Audience
Faculty and staff members of a university, grad students, undergraduates, the general public
主 催 / Organizer
Research Institute of Business Administration,Waseda University
Waseda Institute for Advanced Study,Waseda University
申込み / Registration
Free of charge. Please come to the event venue directly.
