Une recente directive europeenne invite les Etats membres a la mise en place de procedures restructuration preventive dans leur droit commercial. Ce papier evalue l'interet d'implementer une procedure distincte celle qui existe pour entreprises insolvables. Il s'appuie sur l'experience francaise caracterisee par coexistence, depuis 2006, d'une (la sauvegarde) avec plus courante (le redressement...

Prior to the enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005, United States bankruptcy law provided a number of different mechanisms designed to both facilitate credit markets and provide some measure of consumption insurance. The interplay between chapter 7 and chapter 13 discharge procedures in particular influenced debtor behavior such that debtors s...

Dynamic and complex information security risks facing organizations are forcing them to take a hard look at outsourcing to Managed Security Service Providers (MSSPs). The potential advantage of outsourcing is to improve security levels at lower costs. Potential risks of outsourcing to an MSSP includes service quality uncertainty and the business risk of MSSP bankruptcy. In this paper we present...

A more generous consumer bankruptcy system provides greater insurance against financial risks but may also raise the cost of credit. We study this trade-off using 2005 Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), which increased costs filing for bankruptcy. identify effects BAPCPA on borrowing variation in reform across credit scores. find that a one-percentage-point reduct...

Companies incur significant costs from the financial distress. Predicting financial distress will have an important role in preventing bankruptcy. The aim of the present study is to predict the financial distress costs using the Leland and Toft models, during 1996 and 1998. This study examines data relating to 49 companies listed in the Tehran stock exchange collected over ten years from 2005 t...

This paper explores the leverage determinants across firms’ sizesbased on the two main theories behind the capital structure, the trade-offand the pecking order theories. A panel data is sued to find therelationship between capital structure and the variables that proxy forbenefits and costs of debt during 1990 to 2006. Our findings show thatboth principles help to explain the capital structure...

IV Imperfect Capital Markets and The Real World 8 A Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 B Bankruptcy Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 C Operating Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17...

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...