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Is the impact of corporate bankruptcies only negative?
[L’impact des défaillances d’entreprises est-il uniquement négatif ?]

Author

Listed:
  • Benjamin Bureau
  • Thibault Libert

Abstract

In 2016-2017, corporate bankruptcies saw their sharpest drop since 2000. Public discussions often view the impact of corporate bankruptcies purely in terms of their negative short-term consequences, in particular on employment and creditors. However, we show that there may also be more positive medium to long-term effects stemming from resources being reallocated to more productive firms. Les défaillances d’entreprises ont connu en 2016-2017 leur plus fort recul depuis l’an 2000. La question de l’impact des défaillances est souvent réduite dans les débats publics aux conséquences négatives à court terme, en particulier sur l’emploi et les créanciers. Nous montrons qu’il peut aussi en découler des effets plus positifs à moyen-long terme, liés à la réallocation des ressources vers des entreprises plus productives.

Suggested Citation

  • Benjamin Bureau & Thibault Libert, 2018. "Is the impact of corporate bankruptcies only negative? [L’impact des défaillances d’entreprises est-il uniquement négatif ?]," Eco Notepad 70, Banque de France.
    • Handle: RePEc:bfr:econot:70
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