Beautifully Broken Benches: A Typology of Strategic Bankruptcies and The Opportunities for Positive Shareholder Returns

  title={Beautifully Broken Benches: A Typology of Strategic Bankruptcies and The Opportunities for Positive Shareholder Returns},
  author={Jerry Paul Sheppard},
  journal={Journal of Business Strategies},
  • J. Sheppard
  • Published 1970
  • Business, Economics
  • Journal of Business Strategies
Merchants in medieval Venice who failed to pay their debts were closed by banca rotta - the breaking of the bench from which they did their business. In some cases today, bankruptcy is seen as a beautiful strategic maneuver. While there are currently some positive aspects which can be attributed to filing for bankruptcy, there is still debate as to its merits as a strategy. To allow for a more detailed understanding of the strategic bankruptcy concept, the author defines, identifies and… 

Tables from this paper

Does the Market Know Better? The Case of Strategic vs. Non-Strategic Bankruptcies
This paper explores the market response to two apparently similar but in fact very different firm-specific bad-news events: 1) filing a strategic Chapter 11, and 2) filing a financially-motivated
When is bad news really good news ? The case of strategic vs . nonstrategic bankruptcies
We investigate whether the stock market differentiates between firms that file bankruptcy petitions for strategic reasons, and those that file for financial distress-related, i.e., non-strategic
Market reaction to bad news: The case of bankruptcy filings
Although there is an extensive literature on the market's anticipation of, and short-term reaction to, the bankruptcy event, the longer-term reaction to Chapter 11 filing has not been properly
A dynamic program for valuing corporate securities


A Behavioral Theory of the Firm.
Provides a theory of decision making within business organizations. Contrary to the economic theory of the firm, which sees firms as profit-maximizing entities, the authors advocate a theory based on
Business failures post sharpest increase since 1983
  • D and B Reports
Workouts & Turnarounds: The Handbook of Restructuring & Investing in Distressed ComDanies
    Patterns in strategy formulation
    • Management Science