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The Effect of Bankruptcy Reform on the Number of Corporate Reorganization Proposals

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  • Timothy C. G. Fisher
  • Jocelyn Martel

Abstract

One of the major aims of the 1992 reform to bankruptcy law in Canada was to increase the number of commercial reorganization proposals. The purpose of this paper is to analyze the number of reorganization proposals filed by companies in Toronto and Montreal before and after bankruptcy reform to see whether the reform has had its intended effect. Controlling for a variety of macroeconomic and policy factors that also influence the number of reorganization proposals, we find that bankruptcy reform has significantly increased the number of corporate reorganization proposals filed in Toronto and Montreal.

Suggested Citation

  • Timothy C. G. Fisher & Jocelyn Martel, 2003. "The Effect of Bankruptcy Reform on the Number of Corporate Reorganization Proposals," Canadian Public Policy, University of Toronto Press, vol. 29(3), pages 339-349, September.
    • Handle: RePEc:cpp:issued:v:29:y:2003:i:3:p:339-349
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    1. Henryk Gurgul & Paweł Zając, 2014. "The impact of alterations in the local insolvency legislation on business bankruptcy rates in Poland," Statistics in Transition new series, Główny Urząd Statystyczny (Polska), vol. 15(3), pages 453-466, June.
    2. T. C. G. Fisher & J. Martel, 2001. "A Comparison of Business Bankruptcies across Industries in Canada, 1981-2000," Thema Working Papers 2001-03, THEMA (Théorie Economique, Modélisation et Applications), CY Cergy-Paris University, ESSEC and CNRS.
    3. Nico Dewaelheyns & Cynthia Hulle, 2008. "Legal reform and aggregate small and micro business bankruptcy rates: evidence from the 1997 Belgian bankruptcy code," Small Business Economics, Springer, vol. 31(4), pages 409-424, December.
    4. Abínzano, Isabel & Seco, Luis & Escobar, Marcos & Olivares, Pablo, 2009. "Single and Double Black-Cox: Two approaches for modelling debt restructuring," Economic Modelling, Elsevier, vol. 26(5), pages 910-917, September.
    5. Ayadi, Mohamed A. & Lazrak, Skander & Welch, Robert, 2017. "Determinants of bankruptcy regime choice for Canadian public firms," Research in International Business and Finance, Elsevier, vol. 42(C), pages 161-172.
    6. N. Dewaelheyns & C. van Hulle, 2007. "Aggregate Bankruptcy Rates and the Macroeconomic Environment. Forecasting Systematic Probabilities of Default," Review of Business and Economic Literature, KU Leuven, Faculty of Economics and Business (FEB), Review of Business and Economic Literature, vol. 0(4), pages 541-566.

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