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Exploiting the timing of the 2005-06 Italian bankruptcy law reforms, we disentangle the effects of reorganization and liquidation in bankruptcy on bank financing and firms' investment. A 2005 reform introduces procedures facilitating loan renegotiation. The 2006 reform subsequently strengthens...
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, depositors, and regulators in connection with bank insolvency may corrupt banks' credit allocation and monitoring decisions … insolvency has a cathartic effect using a large firm-level dataset and proposing a new indicator to measure the strength of …
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, and regulators around bank insolvency may corrupt banks' credit allocation and monitoring decisions, leading to suboptimal … regulatory insolvency using a large firm-level dataset and proposing a new indicator to measure the catharsis effect. Employing …
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companies both in resolution and in normal insolvency proceedings. Given that parental support remains imperfect in these two …
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banks in distress or facing insolvency. The Banking (Special Provisions) Act 2008 was hurriedly introduced on 21 February … recourse to ordinary insolvency procedures such as those under the Insolvency Act 1986. The Act gave the Treasury wide powers …
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