Events

12:45
Monday Lunch Seminars [Academic Events] Giovanna Nicodano (Collegio Carlo Alberto)
"Does Bankruptcy Risk Increase Value?" Abstract We show that bankruptcy exposure increases ex-post average firm value due to a survivorship bias. The reason is that bankruptcy cancels rms with the lowest realized cash ows from databases. Such bias gives rise to known pricing puzzles. It generates a discount on diversified companies when diversification helps their survival. Moreover, it…
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