If an entrepreneur files for bankruptcy under Chapter 7, (i) most of her debt is discharged, and (ii) only her non-exempt assets are liquidated. Entrepreneurs can undo this “insurance” by posting collateral. The opportunity cost of doing so is lower for safer entrepreneurs who face a lower...

Finance is like life and blood for an organization. If the financial health is not good of an organization than it cannot grow neither it can sustain for longer time phase hence proper management of financial resources is required further it needs proper attention in order to optimize the same...

Capital Structure and Long-Term Solvency position are very important to every company which in profit-making motive companies. According to this concept, the present study is made to assess the capital structure and long term solvency position of Tata Steel Company. The present study use the...

Leasing companies play a vital role in developing micro, medium and small scale industries. Bajaj Finance Limited is a leasing company which also makes contribution to economic development. Hence, maintaining liquidity and solvency position is very important to Bajaj Finance Limited. With this...

I examine whether higher creditor rights prevent strategic default. Borrowers who cross either of two thresholds are exempt from a creditor rights law in India. Using a loan day-level dataset, I find that loan performance is better when the law applies and that outperformance increases after a...

This study examines a comparative relationship of United States and Indian insolvency and bankruptcy laws from individual and corporate prospective and analysis of the legislative framework. This study shows significant amendments and replacement made in previous related Acts for implementing...

This paper analyses financial distress of two group of public sector undertakings of companies in India. The present study using the Kolmogorov-Smirnove for testing if a variable follows a given distribution in a population. This “given distribution” is usually - not always - the normal...

Pre-packaged bankruptcy, commonly referred to as “Pre-packs” finds its roots in United States and United Kingdom; but is yet to be formally integrated in the Indian bankruptcy regime. While the latest Insolvency and Bankruptcy Code, 2016 has been helpful in improving the stressed asset...

This paper takes the position that a legal regime best promotes entrepreneurial activity if that regime offers a viable system to resolve the financial affairs of a distressed individual entrepreneur. I call this a “failure resolution system” (FRS). Consciously recognizing the need for and...

System-wide liquidity is an important determinant for the pricing efficiency of any asset market and bond markets are no exception. Research on Indian Bond markets is scarce, and very few studies have examined the impact of idiosyncratic factors on bond returns. This paper, probably the first of...