IDEAS home Printed from https://ideas.repec.org/a/eee/reveco/v99y2025ics1059056025001893.html
   My bibliography  Save this article

Financial stability strategies: Bankruptcy courts and corporate capital structure adjustment

Author

Listed:
  • Cui, Yang
  • Zhang, Yanliang

Abstract

This paper examines the effects of bankruptcy courts on the adjustment of corporate capital structures among A-share listed companies from 2010 to 2022, utilizing a multi-timepoint difference-in-differences model. The findings reveal that the establishment of bankruptcy courts significantly promotes the adjustment of corporate capital structures. This effect is more profound in companies operating under stronger rule-of-law environments, those with higher capital intensity, and those with lower commercial credit. Further mechanism analysis suggests that easing financing constraints and enhancing internal liquidity management are potential pathways through which bankruptcy courts facilitate these adjustments.

Suggested Citation

  • Cui, Yang & Zhang, Yanliang, 2025. "Financial stability strategies: Bankruptcy courts and corporate capital structure adjustment," International Review of Economics & Finance, Elsevier, vol. 99(C).
    • Handle: RePEc:eee:reveco:v:99:y:2025:i:c:s1059056025001893
    DOI: 10.1016/j.iref.2025.104026
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1059056025001893
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.iref.2025.104026?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Bankruptcy courts; Corporate capital structure adjustment; Financing constraints; Internal liquidity management;
    All these keywords.

    JEL classification:

    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • K20 - Law and Economics - - Regulation and Business Law - - - General

    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:eee:reveco:v:99:y:2025:i:c:s1059056025001893. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620165 .

    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.