This paper suggests a motive for bank mergers that goes beyond alleged and typically unverifiable scale economies: preemtive resolution of banks ́financial distress. Such "distress mergers" can be a significant motivation for mergers because they can foster reorganizations, realize...

Do bankrupt firms impose negative externalities on their non-bankrupt competitors? We propose and analyze a collateral channel in which a firm's bankruptcy reduces collateral values of other industry participants, thereby increasing the cost of external debt finance industry wide. To identify...

Collective bargaining in the German metal and electrical engineering (M+E) industries has undergone a phase of considerable development since the 1990s. The profound changes which underwent collective bargaining in M+E over the last two decades have to be regarded against the background of a new...