IDEAS home Printed from https://ideas.repec.org/a/ers/journl/vxxiiiy2020ispecial2p659-686.html
   My bibliography  Save this article

Bankruptcy Law Severity for Debtors: Comparative Analysis Among Selected Countries

Author

Listed:
  • Sylwia Morawska
  • Blazej Prusak
  • Przemysław Banasik
  • Katarzyna Pustulka
  • Bartosz Groele

Abstract

Purpose: The objective of this paper is to propose the new indicator of bankruptcy law severity for debtors (BLSI-Bankruptcy Law Severity Index). On the basis of this index we conducted comparative analysis of debtor/creditor friendliness of bankruptcy laws among 27 selected countries. Design/Methodology/Approach: In the research the following methods were used: analysis of legal acts, literature review and expert method. Findings: The empirical results show that the most debtor-friendly bankruptcy and restructuring laws are those of the USA, Ireland and Canada. At the opposite pole were Slovenia, Australia and Austria. It can also be noted that many EU countries have a similar level of BLSI measure, which is most likely a consequence of harmonisation activities undertaken within the Community. Practical Implications: The conducted research enables us to propose the direction of changes in bankruptcy and restructuring laws in the next stage. Originality/value: On the basis of proposed BLSI, we will be able to examine the relationship between the severity of bankruptcy law and innovation, entrepreneurship and the level of development of financial markets in the studied countries.

Suggested Citation

  • Sylwia Morawska & Blazej Prusak & Przemysław Banasik & Katarzyna Pustulka & Bartosz Groele, 2020. "Bankruptcy Law Severity for Debtors: Comparative Analysis Among Selected Countries," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 659-686.
    • Handle: RePEc:ers:journl:v:xxiii:y:2020:i:special2:p:659-686
    as

    Download full text from publisher

    File URL: https://www.ersj.eu/journal/1847/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jérôme Sgard, 2006. "On Legal Origins and Brankruptcy Laws: the European Experience (1808-1914)," Working Papers hal-01065660, HAL.
    2. Jérôme Sgard, 2006. "On Legal Origins and Brankruptcy Laws: the European Experience (1808-1914)," Working Papers 2006-26, CEPII research center.
    3. Robert R. Bliss, 2003. "Bankruptcy law and large complex financial organizations: a primer," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 27(Q I), pages 48-58.
    4. Gilles Recasens, 2004. "Financial Reorganization under Pro-creditors Bankruptcy Laws," Post-Print hal-02368850, HAL.
    5. Sharon Simmons & Johan Wiklund & Jonathan Levie, 2014. "Stigma and business failure: implications for entrepreneurs’ career choices," Small Business Economics, Springer, vol. 42(3), pages 485-505, March.
    6. Jana Kliestikova & Maria Misankova & Tomas Kliestik, 2017. "Bankruptcy In Slovakia: International Comparison Of The Creditor´S Position," Oeconomia Copernicana, Institute of Economic Research, vol. 8(2), pages 221-237, June.
    7. Erik Stam & David Audretsch & Joris Meijaard, 2009. "Renascent entrepreneurship," Springer Books, in: Uwe Cantner & Jean-Luc Gaffard & Lionel Nesta (ed.), Schumpeterian Perspectives on Innovation, Competition and Growth, pages 223-237, Springer.
      • Stam, F.C. & Audretsch, D.B. & Meijaard, J., 2006. "Renascent Entrepreneurship," ERIM Report Series Research in Management ERS-2006-017-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    8. Franken, S.M., 2004. "Creditor- and debtor-oriented corporate bankruptcy regimes revisited," Discussion Paper 2004-016, Tilburg University, Tilburg Law and Economic Center.
    9. repec:hal:wpspec:info:hdl:2441/8221 is not listed on IDEAS
    10. repec:hal:spmain:info:hdl:2441/8221 is not listed on IDEAS
    11. Mr. Qaizar Hussain & Clas Wihlborg, 1999. "Corporate Insolvency Procedures and Bank Behavior: A Study of Selected Asian Economies," IMF Working Papers 1999/135, International Monetary Fund.
    12. World Bank, 2020. "Doing Business 2020," World Bank Publications - Books, The World Bank Group, number 32436, December.
    13. Jérôme Sgard, 2006. "Do legal origins matter? The case of bankruptcy laws in Europe 1808-1914," Post-Print hal-01021354, HAL.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Amol Baxi, 2023. "Interim Finance in Creditor-Oriented Bankruptcy Codes: A Study in the Context of Insolvency & Bankruptcy Code, India," Vikalpa: The Journal for Decision Makers, , vol. 48(3), pages 189-205, September.
    2. Błażej Prusak & Paweł Galiński, 2021. "Approval of an Arrangement in the Restructuring Proceedings and the Financial Condition of Companies Listed on the Stock Exchanges in Warsaw. Is There Any Relationship?," JRFM, MDPI, vol. 14(11), pages 1-16, November.
    3. Błażej Prusak & Sylwia Morawska & Michał Łukowski & Przemysław Banasik, 2022. "The impact of bankruptcy regimes on entrepreneurship and innovation. Is there any relationship?," International Entrepreneurship and Management Journal, Springer, vol. 18(1), pages 473-498, March.
    4. Prusak Błażej & Potrykus Marcin, 2022. "Stock price reaction to an arrangement approval in restructuring proceedings – the case of Poland," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 58(3), pages 279-298, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Błażej Prusak & Sylwia Morawska & Michał Łukowski & Przemysław Banasik, 2022. "The impact of bankruptcy regimes on entrepreneurship and innovation. Is there any relationship?," International Entrepreneurship and Management Journal, Springer, vol. 18(1), pages 473-498, March.
    2. Johan Eklund & Nadine Levratto & Giovanni B. Ramello, 2020. "Entrepreneurship and failure: two sides of the same coin?," Small Business Economics, Springer, vol. 54(2), pages 373-382, February.
    3. Maribel Guerrero & Jorge Espinoza-Benavides, 2021. "Does entrepreneurship ecosystem influence business re-entries after failure?," International Entrepreneurship and Management Journal, Springer, vol. 17(1), pages 211-227, March.
    4. Maribel Guerrero & Jorge Espinoza-Benavides, 2021. "Do emerging ecosystems and individual capitals matter in entrepreneurial re-entry’ quality and speed?," International Entrepreneurship and Management Journal, Springer, vol. 17(3), pages 1131-1158, September.
    5. Susan L Young & Christopher Welter & Michael Conger, 2018. "Stability vs. flexibility: The effect of regulatory institutions on opportunity type," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(4), pages 407-441, May.
    6. Sharon A. Simmons & Johan Wiklund & Jonathan Levie & Steve W. Bradley & Sanwar A. Sunny, 2019. "Gender gaps and reentry into entrepreneurial ecosystems after business failure," Small Business Economics, Springer, vol. 53(2), pages 517-531, August.
    7. Stanley Tweyman, 2022. "The Two Truths that Descartes Discovers in His Meditations on First Philosophy that Do Not Require the Divine Guarantee," European Journal of Social Sciences Articles, Revistia Research and Publishing, vol. 5, January -.
    8. Enrique García R & Alvaro Mendez, 2021. "Mañana Today: A Long View of Economic Value Creation in Latin America," Global Policy, London School of Economics and Political Science, vol. 12(3), pages 410-413, May.
    9. Fernando Castelló-Sirvent & Pablo Pinazo-Dallenbach, 2021. "Corruption Shock in Mexico: fsQCA Analysis of Entrepreneurial Intention in University Students," Mathematics, MDPI, vol. 9(14), pages 1-31, July.
    10. Erik Stam & Roy Thurik & Peter van der Zwan, 2010. "Entrepreneurial exit in real and imagined markets," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(4), pages 1109-1139, August.
    11. Bouët, Antoine & Elbehri, Aziz & Nguyen, Duc Bao & Traoré, Fousseini, 2022. "Measuring Agricultural Trade Integration in Southeast Asia," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 37(2), pages 235-266.
    12. Päivi Karhunen & Svetlana Ledyaeva, 2021. "Is Chain Affiliation a Strategic Asset or Constraint in Emerging Economies? Competitive Strategies and Performance in the Russian Hotel Industry," Management International Review, Springer, vol. 61(3), pages 403-427, June.
    13. Huy-Cuong Vo-Thai & Trinh-Hoang Hong-Hue & My-Linh Tran, 2021. "Technological- and Non-Technological Innovation During the Growth Phase of Industry Life Cycle: An Evidence From Vietnamese Manufacturing Enterprises," SAGE Open, , vol. 11(3), pages 21582440211, July.
    14. Judit OLÁH & Tamás HARMAN & József POPP, 2018. "Optimal Distribution Between Box And Pallet Automatic Warehouse Storage," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 17, pages 199-210, September.
    15. Dwi Budi Martono & Trias Aditya & S Subaryono & Prijono Nugroho, 2022. "Cadastre Typology as a Baseline for Incremental Improvement of Spatial Cadastre in Jakarta: Towards a Complete Cadastre," Land, MDPI, vol. 11(10), pages 1-15, October.
    16. Bertheau, Antoine & Vejlin, Rune, 2022. "Employer-to-Employer Transitions and Time Aggregation Bias," Labour Economics, Elsevier, vol. 75(C).
    17. Clas Wihlborg, 2002. "Insolvency and Debt Recovery Procedures in Economic Development: An Overview of African Law," WIDER Working Paper Series DP2002-27, World Institute for Development Economic Research (UNU-WIDER).
    18. Michael Stuetzer & Martin Obschonka & Eva Schmitt-Rodermund, 2013. "Balanced skills among nascent entrepreneurs," Small Business Economics, Springer, vol. 41(1), pages 93-114, June.
    19. Dan K. Hsu & Johan Wiklund & Richard D. Cotton, 2017. "Success, Failure, and Entrepreneurial Reentry: An Experimental Assessment of the Veracity of Self–Efficacy and Prospect Theory," Entrepreneurship Theory and Practice, , vol. 41(1), pages 19-47, January.
    20. Helen Bollaert & Gaël Leboeuf & Armin Schwienbacher, 2020. "The narcissism of crowdfunding entrepreneurs," Small Business Economics, Springer, vol. 55(1), pages 57-76, June.

    More about this item

    Keywords

    Bankruptcy; Law & Economics; law severity; institutional economics.;
    All these keywords.

    JEL classification:

    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:journl:v:xxiii:y:2020:i:special2:p:659-686. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ersj.eu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.