Parameters of insolvency proceedings in developed countries and their dependence on economic performance

The work stems from the hypothesis according to which there is a relationship between the economic performance of a specific country and the results achieved in the given country in insolvency proceedings. To compare the efficiency of the economy, the indicator of gross domestic product per head of population is used for comparative purposes. The authors here use as a departure point the assumption that high economic efficiency, i.e. a high gross domestic product per one inhabitant is possible only in a cases where a high-quality legal and regulatory framework exists. In simpler terms, one could speak of the level of enforceability of law. In this logic, then, it necessarily applies that more developed countries should have better results of insolvency proceedings than less developed countries. Data on yields for creditors, costs for and duration of proceedings are used as a gauge of quality of insolvency proceedings. In this selection, the authors proceed from the conviction that the yield for creditors is the only entirely objective gauge of the success of insolvency proceedings, whilst they further assume that the yield is indirectly proportional to the costs and duration of proceedings. In this area, the authors refer to older works. The authors then declare that the fundamental hypothesis on the relationship of economic efficiency and yield for creditors from insolvency proceedings has successfully been proved. Similarly, further assumptions of the author team have also been proved. Part of the work also includes comparison of data from international survey with real results of insolvency proceedings in the Czech Republic, where, in contrast to other developed countries, there are relatively comprehensive sources based on analyses of specific cases.