Judicial decisions in bankruptcy are often influenced by the goal to preserve employment in financially distressed … market outcomes. We find that workers of firms assigned to high-pro-labor courts experience 4.4% lower post-bankruptcy … persistent in the five-year period after bankruptcy. We discuss several mechanisms that can drive this result …

bankruptcy process. We show that the deadweight costs of bankruptcy can be avoided or substantially reduced through no … bankruptcy process to efficiently allow the renegotiation of labor contracts in certain cases. In sharp contrast to the human …-capital-based theories of optimal capital structure in which the renegotiation of labor contract in bankruptcy is a cost associated with …

construct a measure of the efficiency of debt enforcement in each country. We identify several characteristics of debt … enforcement procedures, such as the structure of appeals and availability of floating charge finance, that influence efficiency …. Our measure of efficiency of debt enforcement is strongly correlated with per capita income and legal origin and predicts …

A basic question for the design of bankruptcy law concerns whether value should be divided in accordance with absolute …