bankruptcy reduce corporate risk-taking. In cross-country analysis, we find that stronger creditor rights induce greater …

bankruptcy reduce corporate risk-taking. In cross-country analysis, we find that stronger creditor rights induce greater …

We investigate the impact of bankruptcy codes on firms' capital-structure choices. We develop a theoretical model to … identify how firm characteristics may interact with the bankruptcy code in determining optimal capital structures. A novel and …-friendly bankruptcy code (such as the US's) and one that is relatively more debt-friendly (such as the UK's) should be a decreasing …

-and-repurchase (repo) contracts. Exemption from an automatic stay in bankruptcy enables financial intermediaries to raise greater liquidity … underlying the contracts. When exempt from bankruptcy, creditors of highly leveraged financial intermediaries respond to such … bankruptcy, can be not only ex-post optimal, but also ex-ante optimal, especially for illiquid collateral with high exposure to …