efficiently to economic activities argue Charles B. Blankart and David Christoh Ehmke. For the case of distress, a bankruptcy … distressed businesses in an orderly asset distribution procedure. Bankruptcy is ex ante of utmost importance because it … incentivizes debtors and creditors to adjust credit costs and lending practice to expect ex post outcomes. Bankruptcy has, however …

This paper integrates the problem of designing corporate bankruptcy rules into a theory of optimal debt structure. We … that are jointly inconsistent in case of default. Bankruptcy rules, therefore, are a necessary part of the overall …

bankruptcy bargain for the price of the asset in a secondary market. With this framework we are able to isolate the influence of …' valuations and the range of uncertainty concerning potential bankruptcy costs. In particular, even though mean bankruptcy costs …

outcome of the bankruptcy process. Instead, firm characteristics and court characteristics, particularly a court's level of … that a Delaware bankruptcy requires approximately 40% less time to complete than an equivalent case in another court. …