MULTINATIONAL NETWORK AND THE EMERGENCE FROM CHAPTER 11 BANKRUPTCY FILING

• Main Author: Long, Morris D.
• Format: Others
• Published: NSUWorks 2013
• Subjects: Bankruptcy; Chapter 11; Emergence; Finance; Multinational; Business
• Online Access: http://nsuworks.nova.edu/hsbe_etd/67; http://nsuworks.nova.edu/cgi/viewcontent.cgi?article=1066&context=hsbe_etd

In this research, it is examined whether U.S. domiciled multinational enterprises (MNEs) or U.S. domestic enterprises (DEs) emerge from Chapter 11 bankruptcy and whether MNEs spend less time (duration) in the Chapter 11 bankruptcy process than their DE counterparts. This research also studies the degree of multinationality and if the degree impacts positive recovery and duration from Chapter 11 bankruptcy on MNEs. This study consists of 403 companies, with 204 classified as MNEs and 199 classified as DEs, examining multinational diversification, internationalization, imperfect capital markets, and real options as measured by each firms' days in the Chapter 11 bankruptcy process. The results of this study show that the MNEs are more successful than DEs emerging from Chapter 11 bankruptcy. The duration of Chapter 11 for MNEs is basically the same for DEs, and the impact of degree of multinationality is not significant for either emergence or duration. However, the results did find that when using the number of foreign subsidiaries as the variable for degree, the predictive powers were significant in support that MNEs are more likely to emerge from Chapter 11 bankruptcy than similar DEs, cet par