Unionized workers are entitled to special treatment in bankruptcy court. This can be detrimental to other corporate … bankruptcy states. Closely won union elections lead to significant bond value losses, especially when firms approach bankruptcy …, and costlier bankruptcy court proceedings. Unions further depress bondholders' recovery values as they are assigned seats …

In this paper, we ask how bankruptcy law affects the financial decisions of corporations and its implications for firm … dynamics. According to current U.S. law, firms have two bankruptcy options: Chapter 7 liquidation and Chapter 11 reorganization … to include both bankruptcy options in a general equilibrium environment. Finally, we evaluate a bankruptcy policy change …

of assets in bankruptcy. Using the random assignment of judges to bankruptcy cases as a natural experiment that forces … allocation of assets in bankruptcy …

How do different bankruptcy approaches affect the local economy? Using U.S. Census microdata at the establishment level … random assignment of bankruptcy judges as a source of exogenous variation in the probability of liquidation. We find that …