Recently, financial institutions have developed improved internal risk rating systems and emphasized the probability of default and loss given default. The default characteristics are studied for 756 loans from a French bank: CIC- Banque SNVB. A binomial logit regression is used to estimate...

Economic theory conjectures complementarities between the ranking of creditors in formal insolvency proceedings and the use of collateral in bank loan contracts as well as the exist-ence of relational compared to arm's length lending. In this paper we seek evidence for the-se hypotheses taking...

The determinants of corporate failure in Italian, Spanish and French small and medium-sized enterprises are investigated in order to find out whether the predictors of financial distress in the countries are the same or not. In order to compare the determinants of financial distress,...

We explore in the French personal bankruptcy process the ways that judges perform with the possibility to discharge all the personal debts in exchange of liquidation of their assets. In particular, we give some empirical results on the determinants of judges' selection between debtors whose...

The principal aim of this study is to analyze the conduct of renegotiations between the shareholders of a company facing financial difficulty (which is operationally viable but insolvent as a result) and its bank creditors. The objective is also to assess the effects of French bankruptcy...

Using a large sample of accounting data for non financial companies in France on the period 1990-2004, the paper studies the interactions between macroeconomic shocks and companies financial fragility. We consider links in both directions, namely whether .rms. bankruptcies are affected by...

The financial crisis has exposed the limitations of French bankruptcy law. The fundamental criticism is that, when designing French bankruptcy law, French law makers have never tried to use the lessons learned from Law and Economics. French law ignores the fact that shareholders' interests can...