Study Shows Bankruptcy Sorts Out Survivors

Salt Lake City, UT – Sweet are the uses of -- bankruptcy. That might be the theme of a study done by Elizabeth Tashjian, an associate professor of finance at the David Eccles School of Business at the University of Utah. She and her colleagues Michael Lemmon and Yung-Yu Ma studied 500 business bankruptcies and found the process is pretty good at sorting out which firms have a chance to survive and do well and which ones ought to throw in the towel. She spoke to KUER's Dan Bammes.