"Pension dumping" is the story of how terminating the pension plan has become a knee-jerk strategy for bankrupt companies that hope to attract big investors to help them restructure - Provided by publisher

The number of firm bankruptcies is surprisingly low in economies with poor institutions. We study a model of bank-firm relationship and show that the bank’s decision to liquidate bad firms has two opposing effects. First, the bank receives a payoff if a firm is liquidated. Second, it loses the...