Record number :
2561876
Title of article :
THE EQUITY PERFORMANCE OF MALAYSIAN COMPANIES EMERGING FROM FINANCIALLY DISTRESSED CONDITION
Author/Authors :
Ahmad, Abd Halim Universiti Utara Malaysia - Faculty of Finance and Banking, Malaysia , Shahar, Hanita Kadir Universiti Utara Malaysia - Faculty of Finance and Banking, Malaysia , Hamzah, Ahmad Husni Universiti Utara Malaysia - Faculty of Finance and Banking, Malaysia
From page :
103
To page :
114
Abstract :
Financial distress occurs when a company cannot meet its debt obligations or has to restructure its debt to avoid default. In Malaysia, Bursa Malaysia Berhad has set up Practice Note 4/2001 (PN4) in order to have separate classification for financially distressed companies.A financially distressed company will be de-listed if it fails to regularize its financial condition within the period stipulated by Bursa Malaysia. From the period of2002 to 2004, 67% ofPN4 companies have successfully implemented their restructuring plans. Consequently, this study attempts to investigate the stock price performance of emerging PN4 companies, which have restructured their financial condition using event study methodology. All thirty-five successfully restructured PN4 companies were taken as a sample in this study. Findings reveal that there are large, negative abnormal returns in 200 days following emergence from PN4. The results are a stark contrast compared to the findings in United States which have documented positive abnormal returns for companies emerging from financial distress
Keywords :
Malaysia , Event study , Restructuring
Journal title :
international journal of business and society
Link To Document :
بازگشت