Property right has been advocated as an important prerequisite to economic development. However, it might encourage opportunistic behaviors, which could undermine public interest. This paper exploits unique features of China’s centralized jurisdiction of administrative litigation to study...

Using a manually collected proprietary dataset, we study the spillover effects of liquidation versus reorganization. For identification, we leverage the random assignment of bankruptcy filings to administrators, which generate plausibly exogenous differences in liquidation probability. We find...