IDEAS home Printed from https://ideas.repec.org/a/hde/epregl/v69y2018i3p298-321.html
   My bibliography  Save this article

Regulation Of The “Too-Big-To-Fail” Entities In The Republic Of Croatia

Author

Listed:
  • Ivan Rubinić

    (Faculty of Law, University of Rijeka)

  • Dejan Bodul

    (Faculty of Law, University of Rijeka)

Abstract

The contemporary stand among scientists is that the role of the state, within mixed market economies, should be reduced to the task of ensuring the institutional framework in order to protect the free market. However, occurrences of the “too-big-to-fail” entities constitute a challenge for the government regarding its ability to manage economic affairs in the traditional manner. Given that the nature of these entities makes them relevant on the verge of their own collapse, the authors focused on the legal and economic aftermath of their failures. The authors undertook extensive research into this topic with the primary goal of arguing that government regulation, in the cases of collapsing “too-big-to-fail” entities, is necessary for achieving stability of the system. After researching of the government’s role both in theory and practice, the authors displayed the findings of the analysis of the legal possibilities within the bankruptcy law of the Republic of Croatia. The historical and practical context of the research is the implementation of the legislation in the complex case of Agrokor Group. Ultimately, the authors argue that the magnitude of the collapsing “too-big-to-fail” company requires government intervention in order to preserve economic stability in the region, in addition to maximizing social welfare.

Suggested Citation

  • Ivan Rubinić & Dejan Bodul, 2018. "Regulation Of The “Too-Big-To-Fail” Entities In The Republic Of Croatia," Ekonomski pregled, Hrvatsko društvo ekonomista (Croatian Society of Economists), vol. 69(3), pages 298-321.
  • Handle: RePEc:hde:epregl:v:69:y:2018:i:3:p:298-321
    as

    Download full text from publisher

    File URL: https://hrcak.srce.hr/202520
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    strategic companies and companies of special interest; systemically important companies; too-big-to-fail companies;
    All these keywords.

    JEL classification:

    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

    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:hde:epregl:v:69:y:2018:i:3:p:298-321. 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: Josip Tica (email available below). General contact details of provider: https://edirc.repec.org/data/hdeeeea.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.