Stock price reaction to an arrangement approval in restructuring proceedings – the case of Poland
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...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Sciendo
2022-10-01
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| Series: | International Journal of Management and Economics |
| Subjects: | |
| Online Access: | https://doi.org/10.2478/ijme-2022-0014 |
| _version_ | 1811171392904757248 |
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| author | Prusak Błażej Potrykus Marcin |
| author_facet | Prusak Błażej Potrykus Marcin |
| author_sort | Prusak Błażej |
| collection | DOAJ |
| description | 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. |
| first_indexed | 2024-04-10T17:14:24Z |
| format | Article |
| id | doaj.art-ce851c7eff7740ddb2e85ac809803948 |
| institution | Directory Open Access Journal |
| issn | 2543-5361 |
| language | English |
| last_indexed | 2024-04-10T17:14:24Z |
| publishDate | 2022-10-01 |
| publisher | Sciendo |
| record_format | Article |
| series | International Journal of Management and Economics |
| spelling | doaj.art-ce851c7eff7740ddb2e85ac8098039482023-02-05T18:59:30ZengSciendoInternational Journal of Management and Economics2543-53612022-10-0158327929810.2478/ijme-2022-0014Stock price reaction to an arrangement approval in restructuring proceedings – the case of PolandPrusak Błażej0Potrykus Marcin1Faculty of Management and Economics, Gdańsk University of Technology, Gdańsk, Poland.Faculty of Management and Economics, Gdańsk University of Technology, Gdańsk, Poland.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.https://doi.org/10.2478/ijme-2022-0014event analysismarket efficiencyprice reactionrestructuring proceedingsg11g14 |
| spellingShingle | Prusak Błażej Potrykus Marcin Stock price reaction to an arrangement approval in restructuring proceedings – the case of Poland International Journal of Management and Economics event analysis market efficiency price reaction restructuring proceedings g11 g14 |
| title | Stock price reaction to an arrangement approval in restructuring proceedings – the case of Poland |
| title_full | Stock price reaction to an arrangement approval in restructuring proceedings – the case of Poland |
| title_fullStr | Stock price reaction to an arrangement approval in restructuring proceedings – the case of Poland |
| title_full_unstemmed | Stock price reaction to an arrangement approval in restructuring proceedings – the case of Poland |
| title_short | Stock price reaction to an arrangement approval in restructuring proceedings – the case of Poland |
| title_sort | stock price reaction to an arrangement approval in restructuring proceedings the case of poland |
| topic | event analysis market efficiency price reaction restructuring proceedings g11 g14 |
| url | https://doi.org/10.2478/ijme-2022-0014 |
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