law on firms' capital structure. Design/methodology/approach – Taking advantage of the Brazilian bankruptcy law reform as …Purpose – The purpose of this paper is to study the effect of changes in creditors' priority defined by the bankruptcy … and after the new law, using fixed-effects panel regression. The empirical results are in line with theories that predict …

information. Findings – A bad borrower, who is characterized by higher bankruptcy costs, riskier projects, and a lower …

regulators. Prior research suggests that firms increase their financial leverage, and thus their probability of bankruptcy and … expected bankruptcy costs, in order to mitigate the severity of binding price ceilings. Although financial leverage can be … insurers as well as the probability of bankruptcy, the non-selection probability. …

The aim of this paper is to study the impact of the bankruptcy law on financing, investment, default and liquidation …, investment, default and liquidation decisions of the firms, of changes in the representative parameters of the bankruptcy …

more convex indirect bankruptcy cost functions, will choose higher hedge ratios. Moreover, we suggest a new approach to …