The Comparative Efficiency of Small-Firm Bankruptcies: A Study of the US and Finnish Bankruptcy Codes
S. Abraham Ravid
Yeshiva University - Syms School of Business
Swedish School of Economics and Business Administration
Financial Management, Vol. 27, No. 4, Winter 1998
We use a sample of small firms to compare efficiency aspects of the creditor-oriented old Finnish bankruptcy code and the debtor-oriented US code. We find that although the same economic factors affect liquidations in both the US and Finland, Finnish firms are somewhat more likely to be liquidated. We also find that in Finland, the costs of going- concern sales and liquidations tend to go towards the higher end of the range found in US studies, and that payments to creditors in US reorganizations are higher than those under the Finnish code.
JEL Classification: G33Accepted Paper Series
Date posted: January 18, 1999
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo2 in 0.313 seconds