Bhattacharjee, Arnab; Higson, Christopher; Holly, Sean; … - In: Review of Law & Economics 5 (2009) 1, pp. 1-1
We examine how macroeconomic instability affects risk of bankruptcy and liquidation. In periods of macroeconomic instability more firms become financially distressed, while the number of potential acquirers falls. Reorganization systems such as Chapter 11 can decouple liquidation from...