countercyclicality of bankruptcy filings found in U.S. data? Yes, it does, but only if we explicitly model recessions as displaying … bankruptcy risk discouraging households from using credit. This finding contradicts the intuition that access to credit helps …

In many countries, bankruptcy is associated with low recovery by creditors. We develop a model of corporate credit … insolvent firms happens out of court if in-court bankruptcy is inefficient, giving banks an advantage over bondholders. Riskier … borrowers will use bank loans anywhere, but also bonds when bankruptcy is efficient. The model matches empirical debt mix …

We develop a model in which, in order to provide managerial incentives, it is optimal to have costly bankruptcy. If … states in which resources lost to bankruptcy in the equilibrium without a government are largest …

Derivative contracts, swaps, and repos enjoy "super-senior" status in bankruptcy: they are exempt from the automatic …

theory, firms with higher bankruptcy costs, i.e., smaller firms and firms with lower asset tangibility, choose capital … structures with higher bankruptcy risk. Further analysis suggests that the capital structures of smaller firms with lower asset … shocks, making them more susceptible to bankruptcy risk …