Determinants of the Duration of the Voluntary Administration Process: An Unconditional Quantile Regression Analysis

Abstract

This study explores determinants of voluntary administration (VA) and deed of company arrangement (DOCA) durations using unconditional quantile regression (UQR). There is heterogeneity in the strength of determinants across the VA and DOCA distributions. Determinants related to complexity and negotiation, including size, debt restructuring and firm age are more important at longer VA durations. Determinants related to scale and procedure, including size, capital provider existence and accounting quality are more important at longer DOCA durations. Few determinants explain short VA and DOCA durations. The UQR results uncovered other new empirical regularities.

Keywords: voluntary administration, deed of company arrangement, duration

JEL Classification: M41, G33