Browsing by Author "Pirovano, Alessandro"
Now showing 1 - 1 of 1
Results Per Page
Sort Options
- Distress anomaly : an international analysisPublication . Pirovano, Alessandro; Reis, RicardoThe relationship between distress risk and returns has been puzzling and difficult to interpret, as distressed stocks have earned lower returns than expected throughout different years and geographical areas. This event has been labeled as the distress anomaly by practitioners. This study provides an in-depth analysis of the matter by dissecting more than 90 countries stock returns to find evidence and possible causes of the phenomenon. The results provide for contrasting evidence throughout the different levels of testing implemented, with traces of the anomaly found especially among emerging economies. country specific characteristics related to the private sector development and regulations seem to have an influence on the matter, as the lower the transparency and effectiveness of the measures is, the higher the probability is to find evidence of the anomaly.