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...

In December 2003, the Brazilian Congress passed a law that led to a natural personal lending experiment. The law allows banks to offer loans with repayment through automatic payroll deduction, which, in effect, turns future income into collateral. We estimate the impact of the new law using auto...

Purpose – The purpose of this paper is to study the effect of changes in creditors' priority defined by the bankruptcy law on firms' capital structure. Design/methodology/approach – Taking advantage of the Brazilian bankruptcy law reform as an experiment and using publicly traded firms'...

Purpose – The purpose of this paper is to study the effect of changes in creditors' priority defined by the bankruptcy law on firms' capital structure. Design/methodology/approach – Taking advantage of the Brazilian bankruptcy law reform as an experiment and using publicly traded firms'...