TRUE or FALSE: Among publicly traded U.S. nonfinancial firms, most ban

TRUE or FALSE: Among publicly traded U.S. nonfinancial firms, most bankruptcy announcements are complete surprises to the market, as indicated by the fact that, for over 90% of such firms, their announcement-month market equity value (MEQ) is at

least as high as their MEQ at month –12 relative to the announcement.
a. TRUE
b. FALSE

ANSWER

B