the Leland-Toft endogenous bankruptcy model has strong explanatory power on the debt recovery observed in the market. Our …, we find that both agency problems and heterogeneous bankruptcy costs weaken the explanatory power of the model. Our study … suggests structural models that incorporate the role of managers in endogenously determining the bankruptcy boundary provide …

knowledge, affect the relationship between corporate governance and the risk of bankruptcy. We find that having larger boards … reduces the risk of bankruptcy only for complex firms. Our results also suggest that the proportion of inside directors on the … board is inversely associated with the risk of bankruptcy in firms that require more specialist knowledge, and that the …

the Leland-Toft endogenous bankruptcy model has strong explanatory power on the debt recovery observed in the market. Our …, we find that both agency problems and heterogeneous bankruptcy costs weaken the explanatory power of the model. Our study … suggests structural models that incorporate the role of managers in endogenously determining the bankruptcy boundary provide …

as a reduction in bankruptcy-related costs. This trend raises the question as to what drives the frequency with which … defaults turn into bankruptcies. We propose a theory based on three pillars: first, bankruptcy is costlier than out … the value of their assets, outside investors only learn them only upon bankruptcy. Creditor's bargaining power upon …

We develop a model of a firm in financial distress. Distress can be mitigated by filing for bankruptcy, which is costly …, or preempted by restructuring, which is impeded by a collective action problem. We find that bankruptcy and restructuring … are complements, not substitutes: Reducing bankruptcy costs facilitates restructuring, rather than crowding it out. And so …

This paper examines bankruptcy costs using market prices of equity and put options during the financial crisis. Our … approach avoids the downward selection bias and the upward bias when using the tradeoff theory to estimate bankruptcy costs …. While the average bankruptcy cost is about 20%, we find wide variation across and within industries. Costs are related …

bankruptcy outcomes. Firms with higher debt concentration at the start of the case are more likely to file prearranged bankruptcy … during bankruptcy concentrates ownership further, but this trading is not associated with subsequent improvements in … bankruptcy outcomes and could, at the margin, increase the likelihood of liquidation …