Showing 1 - 10 of 16
This research investigates how the legal sanctions prevailing under bankruptcy code impact on the design of debt … actively trades off between private renegotiation and costly bankruptcy procedure. Besides, the debtor’s investment policy … investment project (economic efficiency) and bankruptcy costs are avoided through private renegotiation (legal efficiency): this …
Persistent link: https://www.econbiz.de/10005022223
This research investigates how bankruptcy law influences the design of debt contracts and the investment choice through … sanctions are implemented in case of costly bankruptcy only. This way of resolving financial distress can be avoided yet, if a … private agreement is achieved. First, – when sanctions are high – we show that costly bankruptcy may be preferred by honest …
Persistent link: https://www.econbiz.de/10005357843
Persistent link: https://www.econbiz.de/10010863244
Persistent link: https://www.econbiz.de/10005705255
. The bankruptcy code is a "primitive creditor system" and financial distress leads to an arbitration between private … agreement and costly formal bankruptcy. We consider a standard debt contract between a bank and a small firm, both risk … show that costly formal bankruptcies may occur at equilibrium and the internalization of bankruptcy costs is impossible …
Persistent link: https://www.econbiz.de/10005811658
The aim of this paper is to provide new evidence on the value-creation process taking place in bankruptcy procedures … extent the debtor’s value can be preserved under bankruptcy by analyzing the recovery rates in France, Germany, and the … United Kingdom. We use a unique European sample of 900 corporate bankruptcy files that were manually collected in commercial …
Persistent link: https://www.econbiz.de/10008492683
This research investigates how bankruptcy law influences the design of debt contracts and the investment choice through … sanctions are implemented in case of costly bankruptcy only. This way of resolving financial distress can be avoided yet, if a … private agreement is achieved. First, – when sanctions are high – we show that costly bankruptcy may be preferred by honest …
Persistent link: https://www.econbiz.de/10005094139
This research investigates how bankruptcy law influences the design of debt contracts and the investments choices. We … bankruptcy only. This way of resolving financial distress can be avoided yet, if a private agreement is achieved. First, – when … sanctions are high – we show costly bankruptcy may be preferred by honest firms over private negotiation: thus, costly …
Persistent link: https://www.econbiz.de/10005404528
Literature on ex-ante efficiency of bankruptcy procedures investigates how these procedures influence the behavior of … managers and creditors. We extend this literature by explaining how bankruptcy law can influence the design of debt contracts …
Persistent link: https://www.econbiz.de/10005590041
which bankruptcy courts have to combine both social efficiency (maintaining employment) and ex post financial efficiency … as a going concern or liquidation). Addressing this dilemma, we discuss the determinants of bankruptcy courts’ selection … employment by facilitating continuation and reducing the domino effects of bankruptcy. (2) the courts’ choice between rival …
Persistent link: https://www.econbiz.de/10005590042