The Effect of Bankruptcy Reform on the Number of Corporate Reorganization Proposals
THEMA, Universite de Cergy-Pontoise
18 Pages Posted: 12 Jan 2001
Date Written: August 2000
One of the major aims of the 1992 reform to bankruptcy law in Canada was to increase the number of reorganization proposals. The purpose of this paper is to analyze the number of reorganization proposals filed by companies in Toronto and Montreal before and after bankruptcy reform to see whether the reform has had its intended effect. Controlling for a variety of macroeconomic factors that also influence the number of reorganization proposals, we find that bankruptcy reform has doubled the number of corporate reorganization proposals filed in Montreal and almost quadrupled the number filed in Toronto.
Keywords: Bankruptcy, reorganization
JEL Classification: G33, G38
Suggested Citation: Suggested Citation