The Comparative Efficiency of Small-Firm Bankruptcies: A Study of the Us and Finnish Bankruptcy Codes

31 Pages Posted: 11 Nov 2008

See all articles by S. Abraham Ravid

S. Abraham Ravid

Yeshiva University - Syms School of Business

S. Sundgren

affiliation not provided to SSRN

Multiple version iconThere are 2 versions of this paper

Date Written: January 1998

Abstract

We use a sample of small firms to compare efficiency aspects of the creditor oriented old (pre-1993) 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, under the Finnish code firms are somewhat more likely to be liquidated piecemeal. We also find that the costs of going concern sales and of liquidations under the Finnish code tend to go toward the higher end of the range found in US studies; and that payments to creditors in the US reorganizations are higher than the payoffs under the Finnish bankruptcy regime.

Suggested Citation

Ravid, S. Abraham and Sundgren, S., The Comparative Efficiency of Small-Firm Bankruptcies: A Study of the Us and Finnish Bankruptcy Codes (January 1998). NYU Working Paper No. FIN-98-054, Available at SSRN: https://ssrn.com/abstract=1297763

S. Abraham Ravid (Contact Author)

Yeshiva University - Syms School of Business ( email )

United States

S. Sundgren

affiliation not provided to SSRN

No Address Available

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