Judicial decisions in bankruptcy are often influenced by the goal of preserving employment. Using the text of judicial decisions and the random assignment of cases across courts in the state of Sao Paulo in Brazil, we construct a novel court-level measure of pro-labor bias and study its effect...

In the last few years, regulating agencies of many countries, following recommendations of the Basel Committee on Banking Supervision, have compelled financial institutions to maintain minimum capital requirements to cover market and credit risks. The capital charge to cover market risk is a...

In early 2005, the Brazilian Congress approved a new bankruptcy law. The new legislation increased creditor protection and improved the efficiency of the bankruptcy system. This paper evaluates the empirical consequences of a bankruptcy reform on a poorly developed credit market. Using data from...

The goal of this paper is to analyze the premiere effects of the New Brazilian Bankruptcy Law, measuring its impact over the amount of bankruptcies and judicial reorganizations, and the firms' access to credit. Making use of econometric models we find that the amount of bankruptcies (requested...