How common is it for dying corporations to voluntarily liquidate (r/finance xpost)

Posted this in r/finance yesterday but got no answers:

This thought came to me as I was thinking of the downfall of one-time Giants like JC Penney and Yahoo – roughly, whether or not corporations ever came to the collective realization that the gig was up and that the highest value option was to give up and distribute [via liquidation] the corporation's assets to its shareholders.

How common is voluntary liquidation vs bankruptcy in the death of corporations? And if the answer is that bankruptcy is far more common, isn't this bad news for the "value investor" as it would suggest that the long-term intrinsic value of most corporations not paying dividends is 0?

Thanks in advance for answers

Submitted July 17, 2017 at 12:01AM by mic_giu


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