More socially efficient results obtain where the current liquidation value of the assets is low. In this situation, the parties will each retain shares of the reorganized firm based on the bargain that they reach. Assuming that both the creditor and the managers have the same discount rate, they will split the value of the firm equally. This being the case, the managers now have the incentive t...

The rights and duties of the director in entrepreneurial activities are regulated by both 1994 2021 editions Law Georgia “On Entrepreneurs”. powers assigned to him/her include leadership representation company. legal relations often goes beyond scope corporate law. Accordingly, established other fields law apply him. One them is insolvency, which provides for director’s involvement such a regim...

When banks extend loans to each other, they generate a negative externality in the form of systemic risk. They create a network of interbank exposures by which they expose other banks to potential insolvency cascades. In this paper, we show how a regulator can use information about the financial network to devise a transactionspecific tax based on a network centrality measure that captures syst...

The study concerns the problem of statistical data and the regression analyses thereof, primarily on the example of the Czech Republic, which, for the purposes of the models used, has been supplemented by data concerning groups of developed countries. The authors proceed from the assumption that information on the efficiency of insolvency processes is important for understanding the functioning...