CPBIS Offers Latest Report on Paper Industry Bankruptcies
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As part of an ongoing study of paper industry bankruptcies, several researchers recently examined the effects of financial distress on the paper industry's supply chain. According to CPBIS (Center for Paper Business and Industry Studies), Atlanta, GA., USA, researchers Chun-Yu Ho, Patrick McCarthy, and Xuan Ye quantified the "contagion" effects of mill bankruptcies and paper manufacturing sector bankruptcies on each other.
The researchers demonstrated that a bankruptcy announcement in the mills sector has an adverse effect on the return of a portfolio of paper manufacturing firms. However, they found the effect of a paper manufacturer's bankruptcy on the valuation of a mills portfolio to be smaller or nonexistent.
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