the financial crisis have caused many writers to become concerned with the effectiveness of existing bankruptcy laws, which encompasses both the usefulness of reorganization and liquidation laws, as well as efficiency of the judicial system to uphold the laws in court. this concern accompanied in our legal system with the privatization movement has caused many banks owned by the government to b...

Existing quantitative-theoretic models of bankruptcy do not make a distinction between bankruptcy and default. In reality, default occurs first and is generally – but not always (and perhaps not even typically) – followed by a bankruptcy filing months later. While we possess reasonably sophisticated models of household default, we do not possess a comparably sophisticated model about the timing...

We analyzed the effect of managerial ownership, leverage, and discretion on agency costs 14,719 Chilean companies. The results instrumental variables (IV) regressions indicate that ownership capital structure have a negative non-linear costs. Managerial concentration is an effective means internal control over costs, discarding entrenchment effect. impact debt suggests for high leverage levels,...

the main purpose of this paper is prediction of tse corporate financial bankruptcy using artificial neural networks. the mean values of key ratios reported in past bankruptcy studies were selected for neural network inputs (working capital to total assets, net income to total assets, total debt to total assets, current assets to current liabilities, quick assets to current liabilities). the neu...

We examine the optimal mixture and priority structure of bank and market debt using a trade-off model in which banks have the unique ability to renegotiate outside formal bankruptcy. Flexible bank debt offers a superior trade-off between tax shields and bankruptcy costs. Ease of renegotiation limits bank debt capacity, however. Optimal debt structure hinges upon which party has bargaining power...

This paper discusses four bankruptcy-related policy issues. First, what is the economic rationale for having a bankruptcy procedure at all and what defines an economically efficient bankruptcy procedure? Second, why did the number of U.S. bankruptcy filings increase so dramatically between 1980 and 2005? Third, a major bankruptcy reform went into effect in the U.S. in 2005—what did it do and ho...

This paper uses a principal/agent framework to analyze consumer bankruptcy. The bankruptcy discharge partly insures risk-averse borrowers against bad income realizations but also reduces the borrower’s incentive to avoid insolvency. Among our results are the following: (a) high bankruptcy exemptions increase bankruptcy insurance but at the cost of reducing the borrower’s incentives to stay solv...

This research studies the impact of financial crisis and moratorium on bankruptcy final value bank's claim rights. The relevance comes from fact that a lot problems appear in time crises to apply process case bankruptcy. aim this will be finding mechanism evaluate claims help company methodology used depends cash flow generated debtors amount money they can obtain complete data collected Russia...

Models of capital investment in industrial organization typically treat bankruptcy as an involuntary and final outcome, yet firms that file under Chapter 11 of the U.S. Bankruptcy Code typically do so voluntarily and with the expectation that they will eventually emerge. Moreover, Chapter 11 permits cancellation or renegotiation of longterm contracts for labor and capital, effectively providing...

Resolving the puzzle which financial indicators persistently indicate severe disruptions in business of banking, is utmost importance for prudential authorities. Thus, intent this paper to outline microeconomic determinants bankruptcies within banking sectors EU-15 countries and clarify role bank capital it. Namely, regulation designed as both, ex-ante (bankruptcy prevention) ex-post costs redu...