Our paper explores a comprehensive sample of small and large corporate bankruptcies in Arizona and New York from 1995 to 2001. Bankruptcy costs are very heterogeneous and sensitive to the measurement ...method used. We find that Chapter 7 liquidations appear to be no faster or cheaper (in terms of direct expense) than Chapter 11 reorganizations. However, Chapter 11 seems to preserve assets better, thereby allowing creditors to recover relatively more. Our paper also provides a large number of further empirical regularities.
Prediction of bankruptcy is a critical task. Firms can be hedged from bankruptcy situation by solvency recognition at inceptive stage which may avoid enormity in the near prospective. There are lots ...of techniques available for measuring the financial health of a business firm wherein Altman’s Z-score is one of the prominent measures for predicting bankruptcy. The study is based on the fundamentals of the companies using financial ratios by taking companies of PSU index listed on Bombay Stock Exchange across different sectors over a period of 6 years from 2013-2018. The finding reveals that Altman’s Z-score model has a remarkable degree of accuracy in predicting distress using financial ratios. The results may be useful for the managers for financial decision making, the stakeholders to choose investment options & others to look after their interest in the concerned manufacturing and non-manufacturing companies.
Much has been written about the relationship between high medical expenses and the likelihood of filing for bankruptcy, but the relationship between receiving a cancer diagnosis and filing for ...bankruptcy is less well understood. We estimated the incidence and relative risk of bankruptcy for people age twenty-one or older diagnosed with cancer compared to people the same age without cancer by conducting a retrospective cohort analysis that used a variety of medical, personal, legal, and bankruptcy sources covering the Western District of Washington State in US Bankruptcy Court for the period 1995-2009. We found that cancer patients were 2.65 times more likely to go bankrupt than people without cancer. Younger cancer patients had 2-5 times higher rates of bankruptcy than cancer patients age sixty-five or older, which indicates that Medicare and Social Security may mitigate bankruptcy risk for the older group. The findings suggest that employers and governments may have a policy role to play in creating programs and incentives that could help people cover expenses in the first year following a cancer diagnosis.
Bankruptcy law and bank financing Rodano, Giacomo; Serrano-Velarde, Nicolas; Tarantino, Emanuele
Journal of financial economics,
05/2016, Letnik:
120, Številka:
2
Journal Article
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Exploiting the timing of the 2005–2006 Italian bankruptcy law reforms, we disentangle the effects of reorganization and liquidation in bankruptcy on bank financing and firm investment. A 2005 reform ...introduces reorganization procedures facilitating loan renegotiation. The 2006 reform subsequently strengthens creditor rights in liquidation. The first reform increases interest rates and reduces investment. The second reform reduces interest rates and spurs investment. Our results highlight the importance of identifying the distinct effects of liquidation and reorganization, as these procedures differently address the tension in bankruptcy law between the continuation of viable businesses and the preservation of repayment incentives.
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