Artificial neural networks in reorganization outcome and investment of distressed firms: The Taiwanese case

Chi, Li‐Chiu; Tang, Tseng‐Chung

doi:10.1016/j.eswa.2005.04.021

Cited by 18 publications

(21 citation statements)

References 17 publications

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“…A similar analysis was also conducted over the period of 2008-2009; the results are significantly different; for certain holding periods, investing in a basket of shares of firms under reorganization process is more profitable than investing in a basket of comparable healthy firms. This finding is in line with Hotchkiss and Mooradian (1997), Indro et al (1999) and Chi and Tang (2005) reporting that the returns of stocks relative to firms under judicial protection can be positive and significantly higher than those of stocks relative to healthy firms.…”

Section: Discussionsupporting

confidence: 79%

“…The few studies regarding the valuation of stocks under chapter 11 (Morse & Shaw, 1988;Datta & Iskandar-Datta, 1995;Hotchkiss & Mooradian, 1997;Altman, 1998;Indro et al, 1999;Chi & Tang, 2005;Chi & Tang, 2007;Brédart & Finet, 2012;Li & Zhong, 2013;Li, 2013) lead to contrasting results. As per Li and Zhong's (2013), investing in stocks of firms under chapter 11 is, on average, unprofitable.…”

Section: Introductionmentioning

confidence: 99%

“…Over a longer period after the announcement, some events such as news regarding the plan of reorganization may impact the prices of stocks of firms under reorganization procedure (Chi & Tang, 2005). As per Li and Zhong's (2013) study, realized on the period 1998-2006, investing in stocks of firms under chapter 11 of the American bankruptcy code is, on average, unprofitable.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Regarding comparative studies, Mooradian and Hotchkiss (1997), Indro et al (1999) and Chi and Tang (2005) report that the returns of the stocks of firms under chapter 11 can be positive and significantly higher than those of healthy securities for several holding periods.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The Comparison of two equity portfolios makes it possible to compare the performance of the two sub-samples on an identical period. Mooradian and Hotchkiss (1997), Indro et al (1999) and Chi and Tang (2005) report that the returns of the shares of firms under reorganization procedure can be higher than those of healthy securities.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Stocks of Firms under Reorganization Procedure

Brédart¹

2014

IJEF

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This paper aims to analyze the market reaction of US firms following their reorganization procedure announcement. As a first step, an analysis of stock prices of a sample of U.S. companies having filed for chapter 11 during the period 2000-2012 is carried through the use of indexes of prices. As a second step, we compare the stock prices of these firms with the ones of "similar" firms that have not been affected by this type of event. The results report a lower average stock return of companies under judicial protection throughout the considered time horizon, except for the period 2008-2009.

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Section: Discussionsupporting

confidence: 79%

Section: Introductionmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Stocks of Firms under Reorganization Procedure

Brédart¹

2014

IJEF

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Enterprise Performance Evaluation Based on BP Neural Networks

Zhang

2011

Communications in Computer and Information Science

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A comparative survey of artificial intelligence applications in finance: artificial neural networks, expert system and hybrid intelligent systems

Bahrammirzaee

2010

Neural Comput & Applic

442

192

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Nowadays, many current real financial applications have nonlinear and uncertain behaviors which change across the time. Therefore, the need to solve highly nonlinear, time variant problems has been growing rapidly. These problems along with other problems of traditional models caused growing interest in artificial intelligent techniques. In this paper, comparative research review of three famous artificial intelligence techniques, i.e., artificial neural networks, expert systems and hybrid intelligence systems, in financial market has been done. A financial market also has been categorized on three domains: credit evaluation, portfolio management and financial prediction and planning. For each technique, most famous and especially recent researches have been discussed in comparative aspect. Results show that accuracy of these artificial intelligent methods is superior to that of traditional statistical methods in dealing with financial problems, especially regarding nonlinear patterns. However, this outperformance is not absolute.

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Artificial neural networks in reorganization outcome and investment of distressed firms: The Taiwanese case

Cited by 18 publications

References 17 publications

Stocks of Firms under Reorganization Procedure

Stocks of Firms under Reorganization Procedure

Enterprise Performance Evaluation Based on BP Neural Networks

A comparative survey of artificial intelligence applications in finance: artificial neural networks, expert system and hybrid intelligent systems

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