Chapter 11 of Family-Owned Firms
Type
working paper
Date Issued
2025
Author(s)
Abstract
We study the period prior to chapter 11 bankruptcy as well as the process and outcomes of chapter 11 for family-owned firms. Our sample includes 230 chapter 11 filings of S&P 1500 publicly listed US companies from 1996 to 2021. 11 percent of those chapter 11 cases were filed by family-owned firms. Family owners were still actively involved prior to chapter 11, with 72 percent of family-owned firms having a family member in the position of CEO or Chairman and an average equity stake of 21 percent. Our results show that family-owned firms are associated with a higher stock issuance prior to Chapter 11. The results further show that family-owned firms are more likely to engage in forum shopping, the practise of filing chapter 11 in a different district to that of the head office.
Language
English
Keywords
bankruptcy
chapter 11
family firms
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Name
Chapter 11 of Family-Owned Firms.pdf
Size
588.45 KB
Format
Adobe PDF
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