IDEAS home Printed from https://ideas.repec.org/a/pes/ieroec/v7y2016i1p107-129.html
   My bibliography  Save this article

Corporate Bankruptcy And Survival On The Market: Lessons From Evolutionary Economics

Author

Listed:
  • Katarzyna Boratynska

    (Warsaw University of Life Sciences – SGGW)

Abstract

The following paper is a theoretical and empirical study. The terminological differences between bankruptcy and insolvency have been indicated and compared in the article. Most frequently considered aspects of bankruptcy appear in definitions. The first of them emphasizes the economic character of bankruptcy. Insolvency is a culmination of a lack of financial means and the loss of solvency, which does not have a fading tendency, but develops into a permanent phenomenon. In legal terms, insolvency is an institution, whose purpose is to stop the accumulation of debts and most frequently it consists on the liquidation of the debtor's estate. The main purpose of the study is a critical review of the scientific achievements of the representatives of evolutionary economics within the scope and mechanism of bankruptcy and the survival of enterprises. The analyzed case of the Beta company, which went bankrupt, indicates that the companies which are not able to undertake proper adjustments to competitive conditions of the market at the right moment are eliminated from it. The theoretical law “the survival of the fittest” finds then its reflection in practice. The following research methods were used in the article: a descriptive analysis and the trajectories of J. Argenti in terms of models. Detailed examinations of files of insolvency proceedings of the Beta company have been carried out.

Suggested Citation

  • Katarzyna Boratynska, 2016. "Corporate Bankruptcy And Survival On The Market: Lessons From Evolutionary Economics," Oeconomia Copernicana, Institute of Economic Research, vol. 7(1), pages 107-129, March.
    • Handle: RePEc:pes:ieroec:v:7:y:2016:i:1:p:107-129
    DOI: 10.12775/OeC.2016.008
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.12775/OeC.2016.008
    Download Restriction: no
    File URL: https://libkey.io/10.12775/OeC.2016.008?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bruneau, C. & de Bandt, O. & El Amri, W., 2012. "Macroeconomic fluctuations and corporate financial fragility," Journal of Financial Stability, Elsevier, vol. 8(4), pages 219-235.
    2. Sidney G. Winter, 1964. "Economic "Natural Selection" and the Theory of the Firm," LEM Chapters Series, in: Yale Economic Essays, pages 225-272, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    3. Harry Bloch & John Finch, 2010. "Firms and industries in evolutionary economics: lessons from Marshall, Young, Steindl and Penrose," Journal of Evolutionary Economics, Springer, vol. 20(1), pages 139-162, January.
    4. Stewart Thornhill & Raphael Amit, 2003. "Learning About Failure: Bankruptcy, Firm Age, and the Resource-Based View," Organization Science, INFORMS, vol. 14(5), pages 497-509, October.
    5. Nelson, Richard R & Winter, Sidney G, 1980. "Firm and Industry Response to Changed Market Conditions: An Evolutionary Approach," Economic Inquiry, Western Economic Association International, vol. 18(2), pages 179-202, April.
    6. Armen A. Alchian, 1950. "Uncertainty, Evolution, and Economic Theory," Journal of Political Economy, University of Chicago Press, vol. 58, pages 211-211.
    7. J. Stanley Metcalfe, 2007. "Alfred Marshall and the General Theory of Evolutionary Economics," History of Economic Ideas, Fabrizio Serra Editore, Pisa - Roma, vol. 15(1), pages 81-110.
    Full references (including those not matched with items on IDEAS)

    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. Boratyńska, Katarzyna, 2016. "NeoLek impacts on innovative realities: Lessons from Neo-Schumpeterian economics," Journal of Business Research, Elsevier, vol. 69(5), pages 1676-1681.
    2. Pascal Seppecher & Isabelle Salle & Dany Lang, 2019. "Is the market really a good teacher?," Journal of Evolutionary Economics, Springer, vol. 29(1), pages 299-335, March.
    3. Jeroen van den Bergh & John Gowdy, 2000. "Evolutionary Theories in Environmental and Resource Economics: Approaches and Applications," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 17(1), pages 37-57, September.
    4. Sidney G. Winter, 2017. "Pursuing the evolutionary agenda in economics and management research," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 41(3), pages 721-747.
    5. Abhijit Banerjee & Jörgen W. Weibull & Ken Binmore, 1996. "Evolution and Rationality: Some Recent Game-Theoretic Results," International Economic Association Series, in: Beth Allen (ed.), Economics in a Changing World, chapter 4, pages 90-117, Palgrave Macmillan.
    6. Earl, Peter E., 2015. "Anchoring in economics: On Frey and Gallus on the aggregation of behavioural anomalies," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 9, pages 1-25.
    7. B. Nooteboom, 2007. "Transaction Costs, Innovation and Learning," Chapters, in: Horst Hanusch & Andreas Pyka (ed.), Elgar Companion to Neo-Schumpeterian Economics, chapter 63, Edward Elgar Publishing.
    8. Blume, Lawrence E. & Easley, David, 2002. "Optimality and Natural Selection in Markets," Journal of Economic Theory, Elsevier, vol. 107(1), pages 95-135, November.
    9. Jack Vromen, 2013. "Competition as an evolutionary process: Mark Blaug and evolutionary economics," Chapters, in: Marcel Boumans & Matthias Klaes (ed.), Mark Blaug: Rebel with Many Causes, chapter 9, pages 98-124, Edward Elgar Publishing.
    10. Jack Hirshleifer, 1978. "Natural Economy Versus Political Economy," UCLA Economics Working Papers 114, UCLA Department of Economics.
    11. Ajit Singh, 2003. "Competition, corporate governance and selection in emerging markets," Economic Journal, Royal Economic Society, vol. 113(491), pages 443-464, November.
    12. Beker, Pablo F., 2008. "Retained earnings dynamic, internal promotions and Walrasian equilibrium," Journal of Economic Theory, Elsevier, vol. 139(1), pages 114-156, March.
    13. Jerker Denrell & Chengwei Liu & Gaël Mens, 2017. "When More Selection Is Worse," Strategy Science, INFORMS, vol. 2(1), pages 39-63, March.
    14. Foster, John & Metcalfe, J. Stan, 2012. "Economic emergence: An evolutionary economic perspective," Journal of Economic Behavior & Organization, Elsevier, vol. 82(2), pages 420-432.
    15. Massimo Egidi, 2012. "The Cognitive Explanation of Economic Behavior: From Simon to Kahneman," Chapters, in: Richard Arena & Agnès Festré & Nathalie Lazaric (ed.), Handbook of Knowledge and Economics, chapter 9, Edward Elgar Publishing.
    16. William P. Barnett & Daniel A. Levinthal, 2017. "Special Issue Introduction: Evolutionary Logics of Strategy and Organization," Strategy Science, INFORMS, vol. 2(1), pages 1-1, March.
    17. Lasse B. Lien & Peter G. Klein, 2013. "Can the Survivor Principle Survive Diversification?," Organization Science, INFORMS, vol. 24(5), pages 1478-1494, October.
    18. Harry Bloch & Stan Metcalfe, 2011. "Complexity in the Theory of the Developing Firm," Chapters, in: Cristiano Antonelli (ed.), Handbook on the Economic Complexity of Technological Change, chapter 3, Edward Elgar Publishing.
    19. Coad, Alex, 2007. "Testing the principle of `growth of the fitter': The relationship between profits and firm growth," Structural Change and Economic Dynamics, Elsevier, vol. 18(3), pages 370-386, September.
    20. Kant, Shashi, 2003. "Extending the boundaries of forest economics," Forest Policy and Economics, Elsevier, vol. 5(1), pages 39-56, January.

    More about this item

    Keywords

    corporate bankruptcy and survival; creative destruction; evolutionary economics;
    All these keywords.

    JEL classification:

    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation

    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:pes:ieroec:v:7:y:2016:i:1:p:107-129. 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: Adam P. Balcerzak (email available below). General contact details of provider: https://edirc.repec.org/data/ibgtopl.html .

    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.