After the 2007-2008 subprime financial crisis considering bankruptcy evaluation for the banking industry becomes vital. In line of that, this study aims to analyze the bankruptcy profile of foreign versus domestic Islamic banks operating in Malaysia. This study predicted 40% and 75% bankruptcy in the subjected samples of foreign and domestic Islamic banks of Malaysia respectively. However, the ...

C urrent U.S. bankruptcy law has two separate bankruptcy procedures, known as Chapter 7 and Chapter 13. When a debtor files for bankruptcy under Chapter 7, he or she must give up all assets not legally sheltered from creditor seizure in exchange for a discharge of almost all preexisting debts. Under Chapter 13, a debtor may keep all property in exchange for a promise to pay all or some specifie...

This empirical study analyzes the value destruction in US and German firms prior and around their bankruptcy announcement and makes a matched sample comparison between the two bankruptcy codes. The dataset consists of 1160 US and 116 German firms, having filed for bankruptcy between 1999 and 2007. Different market and balance sheet based data are used to explain the divergent stock reaction aro...

BACKGROUND We examined the association between personal bankruptcy filing and acute myocardial infarction (AMI) rates in Canada. METHODS Between 2002 and 2009, aggregate and yearly bankruptcy and AMI rates were estimated for 1,155 forward sortation areas of Canada. Scatter plot and correlations were used to assess the association of the aggregate rates. Cross-lagged structural equation models...

This Essay exposes and analyzes a hitherto overlooked cost of tort law: its adverse effect on innovation. Tort liability for negligence, defective products, and medical malpractice is determined by reference to custom. We demonstrate that courts' reliance on custom and conventional technologies as the benchmark of liability chills innovation and distorts its path. Specifically, recourse to cust...

This paper studies an economic model of tort liability rules and considers litigation between a firm and a consumer, under the assumption that the consumer may not perfectly observe the firm’s action. We compare two alternative tort liability rules: the Negligence rule and strict liability with contributory negligence. We consider the noiseless case as a benchmark, and show that under those two...

An understanding of factors related to trends in the incidence of personal nonbusiness bankruptcy is important to credit managers as well as to economists. This study updates and extends to 1982 an earlier study of economic factors associated with the incidence of bankruptcy from 1950 to 1970. This study shows that the incidence of personal bankruptcy follows movements in a measure of the aggre...

Ongoing tort reform efforts attest to the significant burden that medical liability imposes on the health care system. General attempts to curb excesses can narrow socioeconomic disparities, but as Clark Havighurst and Barak Richman observe, such measures may leave intact some of the regressive characteristics of the framework they supplant. Therefore, it seems appropriate to question whether t...

The U.S. personal bankruptcy system functions as a bankruptcy system for small businesses as well as consumers, because debts of noncorporate firms are personal liabilities of the firms’ owners. If the firm fails, the owner has an incentive to file for bankruptcy, since both business debts and the owner’s personal debts will be discharged. In bankruptcy, the owner must give up assets above a fi...

The U.S. health care system relies on tort litigation as a means of protecting patients and consumers from medical malpractice. The system of tort litigation has contributed to the U.S. having the highest health care spending per capita of any nation, but it has not resulted in superior quality of care. This work argues that tort litigation in health care is actually detrimental to patient safe...