Do Reorganization Costs Matter for Efficiency? Evidence from a Bankruptcy Reform in Colombia

Do Reorganization Costs Matter for Efficiency? Evidence from a Bankruptcy Reform in Colombia

The authors study the effect of reorganization costs on the efficiency of bankruptcy laws. They develop a simple model that predicts that in a regime with high costs, the law fails to achieve the efficient outcome of liquidating unviable businesses and reorganizing viable ones. The authors test the...

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Bibliographic Details
Main Authors: Giné, Xavier, Love, Inessa
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
ACCOUNTING
BANKRUPTCY
BANKRUPTCY CASES
BANKRUPTCY CODES
BANKRUPTCY FILINGS
BANKRUPTCY LAW
BANKRUPTCY LAWS
BANKRUPTCY PROCEEDINGS
BANKS
BOOK VALUE
BRANCHES
CONFLICTS OF INTEREST
COUNTRY COMPARISONS
CURRENT ASSETS
DEBT
ECONOMETRIC MODELS
EXPECTED RETURN
FINANCIAL CRISIS
FINANCIAL DATA
FINANCIAL STATEMENTS
FIRM PERFORMANCE
FIRM SIZE
ILLIQUIDITY
INDIRECT COST
INITIAL FILING
LAW FIRMS
LIMITED
LIQUIDATION
LIQUIDATION VALUE
LIQUIDATIONS
MACROECONOMIC CONDITIONS
MANAGERS
PROBABILITY MODELS
PROXY
PUBLIC CORPORATIONS
PUBLIC FIRMS
REGRESSION ANALYSIS
REORGANIZATION
REORGANIZATION PLAN
REORGANIZATION PLANS
REORGANIZATIONS
RETAINED EARNINGS
RETURN ON ASSETS
SMALL FIRMS
STOCK EXCHANGE
STOCK MARKET
TOTAL COSTS
TRANSACTION COSTS
VARIABLE COSTS
WAGES
WORKING CAPITAL
Online Access:http://documents.worldbank.org/curated/en/2006/07/6938466/reorganization-costs-matter-efficiency-evidence-bankruptcy-reform-colombia
http://hdl.handle.net/10986/8375

Internet

http://documents.worldbank.org/curated/en/2006/07/6938466/reorganization-costs-matter-efficiency-evidence-bankruptcy-reform-colombia
http://hdl.handle.net/10986/8375

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