Bankruptcy systems

Introduction: This page is the main page for information about bankruptcy systems. These systems are of major importance in corporate governance because their design affects the incentives of managers and thereby the efficiency of the firm. They are defined by the bankruptcy procedures.  For instance, those that specify the transfer of corporate control from stockholders to creditors when a firm goes bankrupt. A reference on bankruptcy systems is Smith and Warner [1979].

Content

• Table: Effects of bankruptcy systems on corporate performance and other other kinds of institutions of relevance for corporate governance.
• Table: International corporate governance - Tentative characterizations of legal and empirical state of large firm bankruptcy systems in various countries as of 1980-95: 1) Developing countries. 2) Germany. 3) Japan. 4) Anglo-American countries. 5) Denmark.