economic transformation influence the impact of bankruptcy regulation in a way distorting it towards liquidation. …This paper looks at simple decision rules in bankruptcy procedures. It describes special issues of enterprise … liquidation and reorganization during economic transformation. The reforms of the financial system and other important factors in …

We develop a dynamic model to assess the effects of liquidity and leverage requirements on banks' insolvency risk. The … model features endogenous capital structure, liquid asset holdings, payout, and default decisions. In the model, banks face …

This paper analyses two aspects of banking crises: the choices that banks make to passively roll over loans in default … versus actively pursuing their claims; and choices by regulators to ‘punish’ passive and insolvent banks versus rescuing them …. Banks may choose to roll over loans in order to hide their poor financial conditions or to gamble for resurrection …

We analyse bidding incentives and present evidence on takeover premiums in Sweden’s mandatory bankruptcy auctions. The … a bank-bidder coalition mimics the monopolist sales price. In the region where the bank’s debt is impaired, this optimal … bid exceeds the private valuation of the bank’s coalition partner (overbidding). We derive new and testable cross …

identify major determinants of pool formation, in particular the distribution of lending shares among banks, the number of … banks, and the severity of the distress shock to the borrower. …

. The model also explains in what respect banks differ from enterprises and what this implies for policy. Commonly observed …

model with banks and financial intermediation is constructed in which default-risk can be priced. It is shown how the credit …

In this paper we analyze the impact of government and private ownership of banks on firms’ probability to innovate. We …

-administered bankruptcy procedures. Although we find that the large majority of bankrupt firms in our sample of Hungarian firms are kept as … going concerns, the evidence suggests that the going concern bias sharply reduces aggregate proceeds to pre-bankruptcy … bankrupt company. Comparisons with other bankruptcy codes suggest that the application of the code and court procedures have an …