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Bankruptcy Law and the Canadian Experience: An Economic Appraisal

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  • Jocelyn Martel

Abstract

The present paper offers an overview of the Canadian bankruptcy system and looks at the different roles a bankruptcy law should play--that is avoiding a common property problem, respecting pre-bankruptcy entitlements, and increasing the flow of information between all parties in order to eliminate inefficient firms. Statistical evidence on the use of liquidation and reorganization procedures and on the characteristics of firms using each procedure are supplied. Finally, the author looks at the rationale and the possible impact of some proposed amendments to the Canadian Bankruptcy Act.

Suggested Citation

  • Jocelyn Martel, 1991. "Bankruptcy Law and the Canadian Experience: An Economic Appraisal," Canadian Public Policy, University of Toronto Press, vol. 17(1), pages 52-63, March.
    • Handle: RePEc:cpp:issued:v:17:y:1991:i:1:p:52-63
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    References listed on IDEAS

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    1. Webb, David C, 1987. "The Importance of Incomplete Information in Explaining the Existence of Costly Bankruptcy," Economica, London School of Economics and Political Science, vol. 54(215), pages 279-288, August.
    2. Golbe, Devra L., 1988. "Risk-taking by firms near bankruptcy," Economics Letters, Elsevier, vol. 28(1), pages 75-79.
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    Cited by:

    1. Martel, Jocelyn, 1996. "Impact anticipé de la réforme à la loi sur la faillite," L'Actualité Economique, Société Canadienne de Science Economique, vol. 72(4), pages 417-432, décembre.
    2. Jocelyn Martel, 1994. "Commercial Bankruptcy and Financial Reorganization in Canada," CIRANO Papers 94c-02, CIRANO.
    3. Jocelyn Martel, 1996. "Solutions au stress financier : Un survol de la littérature," CIRANO Working Papers 96s-03, CIRANO.
    4. Timothy C. G. Fisher & Jocelyn Martel, 1994. "Will the Bankruptcy Reform Work? An Empirical Analysis of Financial Reorganization in Canada," Canadian Public Policy, University of Toronto Press, vol. 20(3), pages 265-277, September.
    5. Martel, Jocelyn, 1996. "Solutions au stress financier," L'Actualité Economique, Société Canadienne de Science Economique, vol. 72(1), pages 51-78, mars.
    6. Jocelyn Martel, 1995. "Signaling in Financial Reorganization: Theory and Evidence from Canada," CIRANO Working Papers 95s-34, CIRANO.

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