Edward R. Morrison

TL;DR: In this paper, the authors model the liquidation decision as the exercise of a real option and show that it depends critically on particular types of information about the firm and its industry and introduce a framework that can illuminate many areas of law, such as summary judgment motions, parole and agency rule making.

TL;DR: In this article, the authors model the shutdown decision as the exercise of a real option and show that the decision may loom so large in the early parts of the bankruptcy case that it erases any significant difference between Chapter 11 and many alternative market-mimicking regimes.

TL;DR: This paper investigated whether homeowners respond strategically to news of mortgage modification programs by defaulting on their mortgages by exploiting plausibly exogenous variation in modification policy induced by U.S. state government lawsuits against Countrywide Financial Corporation, which agreed to offer modifications to seriously delinquent borrowers with mortgages throughout the country.

TL;DR: This article analyzed a sample of large privately and publicly held businesses that filed Chapter 11 bankruptcy petitions during 2001 and found pervasive creditor control, including senior lenders who exercise significant control through stringent covenants contained in DIP loans, such as line-item budgets.

TL;DR: This article analyzed a sample of large privately and publicly held businesses that filed Chapter 11 bankruptcy petitions during 2001 and found pervasive creditor control, and that equity holders and managers exercise little or no leverage during the reorganization process.