This study has as its main objective to analyze the best bankruptcy procedure considering the conflict of interests … characteristics, which is also relevant to the design of the bankruptcy law. Simulating a general-equilibrium model with incomplete … marktes and bankruptcy, we show that for liquidation procedure that does not depreciates the failed assets too much …

This paper examines the relationship between corporate governance level and the bankruptcy law to such debt variables … corporate governance and the harsher bankruptcy law, the lower the cost of debt. Second, we find that better governance and a … harsher bankruptcy laws have a positive effect on debt. As consequence, firms increase their set of investment projects …

This paper studies the effect of changes in creditors? priority order defined by the bankruptcy law on firms? capital … structure. Taking advantage of the Brazilian bankruptcy law Reform and using firms? balance sheet data, we obtain results in …

. The bankruptcy code is a "primitive creditor system" and financial distress leads to an arbitration between private … agreement and costly formal bankruptcy. We consider a standard debt contract between a bank and a small firm, both risk … show that costly formal bankruptcies may occur at equilibrium and the internalization of bankruptcy costs is impossible …

The aim of this paper is to provide new evidence on the value-creation process taking place in bankruptcy procedures … extent the debtor’s value can be preserved under bankruptcy by analyzing the recovery rates in France, Germany, and the … United Kingdom. We use a unique European sample of 900 corporate bankruptcy files that were manually collected in commercial …

In early 2005 a new bankruptcy law was approved by the Brazilian Congress, taking effect a few months later. The new … legislation improved creditor protection and the bankruptcy system's efficiency. This paper tries to shed some light on the … empirical consequences of a bankruptcy reform on a poorly developed credit market. Using data from Argentine, Brazilian, Chilean …

bankruptcy procedure is triggered off. This arbitration depends on the legal context and, more specifically, on the national … bankruptcy code. No study has been done on the French Civil Law. Yet, this legal system has inspired other important legislations … inclination for liquidation, collaterals may increase the occurrence of bankruptcy, provided the law facilitates such liquidation …

Under the assumption that asset markets are incomplete, this paper introduces bankruptcy in an intertemporal … argues that intervention in the form of a level of bankruptcy exemption can enhance not only social welfare but also … distributive equity. The bankruptcy law is carefully specified in the model. The model generates distributional changes in …

general equilibrium model. Binding ceilings on loan rates reduce the probability of bankruptcy. Lower bankruptcy rates result … in lower bankruptcy and liquidation costs. The authors state conditions under which the resources freed by this cost …