Rule Proliferation and Institutional Quality in the Enterprise Bankruptcy Law of the People's Republic of China, 1986-2009

12 Pages Posted: 23 Feb 2012

See all articles by Nathan Betancourt

Nathan Betancourt

affiliation not provided to SSRN

Barbara Krug

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM); Erasmus Research Institute of Management (ERIM)

Date Written: February 22, 2012

Abstract

Does an increase in the quantity of legal rules influence the overall quality of the formal institution to which they belong? In this article, we draw upon a longitudinal analysis of the People's Republic of China's Enterprise Bankruptcy Law in order to answer this question. We aim to examine the degree to which the proliferation of legal provisions, as opposed to the elaboration of the statute, affects organisational compliance with the law. In doing this, we find that when the expansion of the law leads to rule accretion in the absence of rule refinement, the use of the bankruptcy law by private organisations diminishes.

Keywords: institutional change, bankruptcy, China

Suggested Citation

Betancourt, Nathan and Krug, Barbara, Rule Proliferation and Institutional Quality in the Enterprise Bankruptcy Law of the People's Republic of China, 1986-2009 (February 22, 2012). Erasmus Law Review, Vol. 4, No. 3, 2012. Available at SSRN: https://ssrn.com/abstract=2009333

Nathan Betancourt (Contact Author)

affiliation not provided to SSRN ( email )

Barbara Krug

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

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