Abstract

http://ssrn.com/abstract=905196
 
 

References (40)



 
 

Citations (2)



 


 



Legal Reform and Aggregate Small and Micro Business Bankruptcy Rates: Evidence from the 1997 Belgian Bankruptcy Code


Nico Dewaelheyns


KU Leuven - Faculty of Business and Economics (FEB)

Cynthia Van Hulle


KU Leuven - Department of Applied Economics

March 2007

Small Business Economics, Vol. 31, No. 4, 2008

Abstract:     
Many Continental European countries recently reformed their bankruptcy legislations to stimulate reorganization and firm survival. We show that the Belgian 1997 bankruptcy code reform, which implemented several international best practice recommendations, significantly reduced aggregate small and micro business bankruptcy rates. However, using distributed lag models to control for the relationship between bankruptcy rates and macroeconomic variables such as real GDP growth, consumer confidence, inflation, etc., we find that the new code's impact is not the same for all types of companies. Specifically, while the beneficial effect of the reform is largely similar between small firms (i.e. stock corporations) and micro firms (i.e. partnerships), it is only significant in certain industries (manufacturing and trade). Overall, our results indicate that solely the reforms aimed at limiting domino bankruptcy effects have had a substantial impact. Our findings have several policy implications for the evaluation and modification of the bankruptcy system.

Number of Pages in PDF File: 40

Keywords: Bankruptcy reform, Aggregate bankruptcy rates

JEL Classification: G33, E32, K22


Open PDF in Browser Download This Paper

Date posted: June 1, 2006 ; Last revised: September 17, 2015

Suggested Citation

Dewaelheyns, Nico and Van Hulle, Cynthia, Legal Reform and Aggregate Small and Micro Business Bankruptcy Rates: Evidence from the 1997 Belgian Bankruptcy Code (March 2007). Small Business Economics, Vol. 31, No. 4, 2008. Available at SSRN: http://ssrn.com/abstract=905196 or http://dx.doi.org/10.2139/ssrn.905196

Contact Information

Nico Dewaelheyns (Contact Author)
KU Leuven - Faculty of Business and Economics (FEB) ( email )
Naamsestraat 69
Leuven, B-3000
Belgium
Cynthia Van Hulle
KU Leuven - Department of Applied Economics ( email )
Naamsestraat 69
B-3000 Leuven
BELGIUM
32-16-326734 (Phone)
32-16-326732 (Fax)
Feedback to SSRN


Paper statistics
Abstract Views: 833
Downloads: 93
Download Rank: 207,423
References:  40
Citations:  2

© 2016 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollobot1 in 0.203 seconds