The Costs of Bankruptcy
Our paper explores a comprehensive sample of small and large corporate bankruptcies in Arizona and New York from 1995-2001. We find that bankruptcy costs are very heterogeneous and sensitive to measurement method. Still, Chapter 7 liquidations appear no faster or cheaper (in terms of direct expense) than Chapter 11 bankruptcies. But Chapter 11 seems to preserve assets better, and thereby allows creditors to recover relatively more. Our paper also provides a large number of further empirical regularities.
|Date of creation:||07 Dec 2005|
|Date of revision:||21 Sep 2009|
|Contact details of provider:|| Web page: http://icf.som.yale.edu/|
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"The Optimal Concentration of Creditors,"
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