We conduct a theoretical and empirical investigation of the impact of bankruptcy codes on firms’ capital …-structure choices. In our theoretical framework, costs of financial distress are endogenously determined as a function of the bankruptcy … code. Anticipated liquidation values emerge as the key variable in the capital structure-bankruptcy code link: among other …

under limited liability should be characterized by higher than average insolvency and employment growth rates. We test these … without losses to creditors, and bankruptcy as forced liquidation. We demonstrate that firms under limited liability are … characterized by higher growth and higher insolvency rates than comparable firms under full liability. Surprisingly, the likelihood …

driving asset prices to ‘overshoot’ equilibrium when an asset bubble bursts - threatening widespread insolvency and what … to crisis resolution. The usual bankruptcy procedures for doing this fail to internalise the price effects of asset ‘fire …

, especially, the financial cost of filing for bankruptcy. We study the effects of the reform on bankruptcy, insolvency, and …. We find that the decline in bankruptcy filings resulted in a rise in the rate and persistence of insolvency as well as an … that insolvency is associated with worse financial outcomes than bankruptcy, as insolvent individuals have less access to …

outside bankruptcy. The approach to bankruptcy is contract-based, with lenders and borrowers relying on procedures written … the decision to place the distressed firm in bankruptcy. …