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 …

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 …

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 …

The termination of a representative financial firm due to excessive leverage may lead to substantial bankruptcy costs …

A firm's termination leads to bankruptcy costs. This may create an incentive for outside stakeholders or the firm …'s debtholders to bail out the firm as bankruptcy looms. Because of this implicit guarantee, firm shareholders have an incentive to …