Does an entrepreneur-friendly bankruptcy law encourage more entrepreneurship development at a societal level? How does bankruptcy law affect entrepreneurship development around the world? Drawing on a real options perspective, we argue that if bankrupt entrepreneurs are excessively punished for failure, they may pass potentially high-return but inherently high-risk opportunities. Amassing a lon...

Personal bankruptcy Ž lings have risen from 0.3 percent of households per year in 1984 to around 1.35 percent in 1998 and 1999, transforming bankruptcy from a rare occurrence to a routine event. Lenders lost about $39 billion in 1998 due to personal bankruptcy Ž lings. But economists have little understanding of why households Ž le for bankruptcy or why Ž lings have increased so rapidly. Until ...

the bankruptcy prediction models have long been proposedas a key subject in finance. the present study, therefore, makes aneffort to examine the corporate bankruptcy prediction through employmentof the genetic algorithm model. furthermore, it attempts to evaluatethe strategies to overcome the drawbacks of ordinary methods forbankruptcy prediction through application of genetic algorithms. thesa...

Bankruptcy is one of the most important issues in Financial Management and investment. Numerous studies on Bankruptcy Prediction have been carried out considering Quantitative factors and they applied different techniques on it to predict Bankruptcy, while only fewer studies have proposed and considered Qualitative factors for prediction of Bankruptcy and even then failure of bankruptcy persist...

This paper analyzes bankruptcy problems with nontransferable utility as a generalization of bankruptcy problems with monetary estate and claims. Following the classical axiomatic theory of bankruptcy, we formulate some appropriate properties for NTU-bankruptcy rules and study their implications. We explore duality of bankruptcy rules and we derive several characterizations of the generalized pr...

Bankruptcy is a legal procedure that claims a person or organization as a debtor. It is essential to ascertain the risk of bankruptcy at initial stages to prevent financial losses. In this perspective, different soft computing techniques can be employed to ascertain bankruptcy. This study proposes a bankruptcy prediction system to categorize the companies based on extent of risk. The prediction...

judgment of bankruptcy leads to bankruptcy of merchant. therefore, merchant will be incapable and cannot possess in his asset. various provisions can be found in commercial code, regarding contract’s of bankrupt merchant, which is inconsistent with civil code. article 423 has stipulated that trades of merchant after bankruptcy, in three cases will be void. this position is not consistent with c...

We investigate a proposed reform of U.S. personal bankruptcy law which combines Chapters 7 and 13. The proposed reform obliges debtors in bankruptcy to use part of both their wealth and their future earnings to repay debt and therefore bases the obligation to repay in bankruptcy on debtors' ability-to-pay. An important function of personal bankruptcy is to provide partial wealth insurance for r...

This paper introduces an explicit institution of bankruptcy into a general equilibrium model of endogenous ̄nancial markets with asymmetric information. The institution of bankruptcy is modelled as a set of rules that determine if an agent is eligible to have his debts discharged. Those rules are called a bankruptcy code. Given a bankruptcy code, we allow free entry of intermediaries o®ering al...

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...