Bankruptcy

Working Paper

When Should Bankruptcy Law Be Creditor- or Debtor-Friendly? Theory and Evidence

We examine how creditor protection affects firms with different levels of owners’ and managers’ personal costs of bankruptcy. Theoretically, we show that firms with high personal costs of bankruptcy borrow and invest more under a more debtor-...Read more

David Schoenherr
Jan Starmans
24 September 2016

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