The main purpose of a bankruptcy is to settle accounts with creditors and to establish a market value for the company as a whole. This paper deals with Finnish bankruptcies. It shows that bankruptcies are strongly related to the business cycle and
It is a commonly held belief that markets tend to both over-react and under-react to the arrival of good or bad news. Market conﬁdence can drive up values of stocks, and market fear can lead to large negative dips in stock value.
Entrepreneurs are often perceived to be creative and risk taking (Kreuger, 2002). The purpose of this paper is to investigate entrepreneurs’ response to a failure namely a bankruptcy. People react differently to a bankruptcy and tend to blame different things as the