whether Z-score models can predict bankruptcies for a period up to three years earlier. Our study shows that Altman model performs well in predicting failures. This is in line with other findings. The empirical results are interesting since they can be used by company management for financing decisions‚ by regulatory authorities and by portfolio managers in stock selection. Keywords: Valuation‚ Altman‚ Regulation‚ Share price‚ Capital markets‚ bankruptcy JEL Classification Codes: G33:G14
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De’Shel Ferguson The beloved Twinkies‚ which were once everyone’s favorite childhood snack and a junk food enthusiast’s favorite goodie‚ disappeared off of the shelves of stores. Hostess recently celebrated its 93rd year of existence‚ but is this existence now beginning to fade? Investing.businessweek.com (2013) claims that “The Company was formerly known as Interstate Bakeries Corporation and changed its name to Hostess Brands‚ Inc. in November 2009. Hostess Brands‚ Inc. was founded in 1930
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Partial Liquidation Bankruptcy of a corporation is a legal procedure made to assist companies that are unable to completely pay outstanding debts incurred‚ while repaying creditors from the available assets. When bankruptcy occurs corporations are able to seek various avenues in order to relieve themselves from debt. The United States Code (U.S.C.) contains five chapters of debt relief. Chapter 7‚ Title 11‚ of the U.S.C. specifically deals with liquidation proceedings. Liquidation is: “(1) In regard
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the following case – at the Example of the Bail out of General Motors by the US Government. 2. The Phenomenon A bailout is a colloquial pejorative term for giving a loan to a company or country which faces serious financial difficulty or bankruptcy. It may also be used to allow a failing entity to fail gracefully without spreading contagion. A bailout could be done for mere profit‚ as when a predatory investor resurrects a floundering company by buying its shares at fire-sale prices‚ for social
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Schefenackers‚ courtesy of the credit crunch. As America’s subprime-mortgage crisis has taken hold‚ credit conditions have suddenly tightened. In addition‚ rich economies look set to slow down—perhaps uncomfortably abruptly. The rate of corporate bankruptcies therefore looks sure to rise; and to stave off insolvency‚ many companies will have to reach agreement with their creditors on a restructuring of their debts. Since mid-September an index of the cost of protection against defaults by low-rated
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largest labor unions refused to renegotiate labor contracts‚ which caused Hostess Brands to declare bankruptcy. Along with the bankruptcy‚ the court ordered the winding down of all Hostess Brands operations and the liquidation of their assets. Description Hostess Brands‚ Inc. was established in 1930 as Interstate Bakeries Corporation‚ in Kansas City‚ Missouri. Once it surfaced from its bankruptcy in 2004‚ it relocated to Irving‚ Texas as Hostess Brands‚ Inc. Hostess had 18‚500 employees and operated:
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Companies facing bankruptcy will often reorganize in an attempt to regain their financial footing. This kind of reorganization may involve cutting the work force and eliminating money-losing divisions or products. Companies that aren’t ready for bankruptcy‚ but that are not growing at a rate that will keep them viable in the long term‚ may reorganize by negotiating a merger or refocusing their business on a new area or product. Why Restructure? Courts may require companies in bankruptcy to reorganize
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Bankruptcy From Wikipedia‚ the free encyclopedia Jump to: navigation‚ search "Bankrupt" redirects here. For the album by Phoenix‚ see Bankrupt!. Notice of closure attached to the door of a computer store the day after its parent company declared "bankruptcy" (strictly‚ put into administration) in the United Kingdom Bankruptcy is a legal status of a person or other entity that cannot repay the debts it owes to creditors. In most jurisdictions‚ bankruptcy is imposed by a court order‚ often initiated
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com/patent-impairment-balance-sheet-36820.html Financial Accounting Standards Board (FASB). (2010). Accounting standards codificationTM. Financial Accounting Standards Board (FASB). Retrieved from http://asc.fasb.org/ Lombard‚ D. (2002). Revisiting bankruptcy rules and reorganization plans. Review of Business‚ 23(1)‚ 21. Schroeder‚ R. G.‚ Clark‚ M. W.‚ & Cathey‚ J. M. (2011). Financial accounting theory and analysis (10th ed.). Hoboken‚ N.J.: Wiley. The United States
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Merger Fundamentals Firms sometimes use mergers to expand externally by acquiring control of another firm. The objective for a merger should be to improve the firm’s share value‚ a number of more immediate motivations such as diversification‚ tax considerations‚ and increasing owner liquidity frequently exist. Sometimes mergers are pursued to acquire specific assets owned by the target rather than by a desire to run the target as a going concern. Mergers‚ Consolidations‚ and Holding Companies
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