<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>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.</p>
</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.

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

International Journal of Management and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

The study aims to empirically analyze the reaction of stock prices to the information about the conclusion and acceptance of a debtor–creditor arrangement...

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

Article Category: Empirical Paper

Online veröffentlicht: 30. Sept. 2022

Seitenbereich: 279 - 298

Eingereicht: 14. Apr. 2022

Akzeptiert: 27. Juli 2022

DOI: https://doi.org/10.2478/ijme-2022-0014

Schlüsselwörter
event analysis, market efficiency, price reaction, restructuring proceedings

© 2022 Błażej Prusak et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

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

Article Category: Empirical Paper

Online veröffentlicht: 30. Sept. 2022

Seitenbereich: 279 - 298

Eingereicht: 14. Apr. 2022

Akzeptiert: 27. Juli 2022

DOI: https://doi.org/10.2478/ijme-2022-0014

Schlüsselwörterevent analysis, market efficiency, price reaction, restructuring proceedings

© 2022 Błażej Prusak et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Schlüsselwörter
event analysis, market efficiency, price reaction, restructuring proceedings