The new Chinese Enterprise Bankruptcy Law 2006 has been written in accordance with the best international practice. We would therefore expect to see it being used to resolve most cases of corporate financial distress. However, the law is only rarely used in practice which prompts search for...

This paper investigates a model of default in financial networks where the decision by one agent on whether or not to default impacts the incentives of other agents to escape default. Agents' payoffs are determined by the clearing mechanism introduced in the seminal contribution of Eisenberg and...

This paper investigates a model of strategic interactions in financial networks, where the decision by one agent on whether or not to default impacts the incentives of other agents to escape default. Agents' payoffs are determined by the clearing mechanism introduced in the seminal contribution...

This paper investigates a model of strategic interactions in financial networks, where the decision by one agent on whether or not to default impacts the incentives of other agents to escape default. Agents' payoffs are determined by the clearing mechanism introduced in the seminal contribution...

Empirical evidence suggests that banks often engage in refinancing of intrinsically insolvent debtors instead of writing of their non-performing loans. Such forbearance lending may induce soft budget constraints for the debtors, as it diminishes their incentives to thwart default. This paper...

We examine the determinants of events of default clauses in syndicated loan and bond contracts, provisions that allow lenders to request the repayment of principal and to terminate lending commitments. We document significant variation in the use of default clauses and their restrictiveness...

Using the state-level adoption of anti-recharacterization laws (ARLs), this paper examines how strengthening the rights of some creditors affects other creditors’ claims. The adoption of an ARL significantly increases the rights of securitization creditors by denying bankruptcy court judges’...

The purpose of this paper is to examine the essential characteristics of the financial statements of FinTech start-ups and to investigate which figures of balance sheets are suitable indicators of failure for this still rising group of start-ups. We conduct a quantitative analysis of 595 annual...

I explore an unintended consequence of the recent Indian bankruptcy reform, the Insolvency and Bankruptcy Code, 2016 (IBC), on the sticky cost behaviour of firms. I find that while there exists stickiness among Indian firms, in general (i.e., costs increase by approximately 0.36% per 1% increase...

This article tests the modell of Brander and lewis under ertrand and Cournot competition.