• John Y. Campbell


Predicting Financial Distress and the Performance of Distressed Stocks. John Y. Campbell, November 2011, Paper. "The authors examine financially distressed companies’ common stock performance and discover low share prices, high levels of volatility, high leverage, low cash holdings, and low returns, irrespective of size and value characteristics. They build and test a model that measures the probability of a company becoming distressed and then show that “safe” stocks clearly outperform “distressed” stocks, even before adjusting for differences in risk..." May require purchase or user account. Link