Gender Gap in Corporate Reorganizations

41 Pages Posted: 6 Apr 2022

See all articles by Paulo Manoel

Paulo Manoel

University of Kentucky - Department of Finance & Quantitative Methods

Vinicius Augusto Brunassi Silva

FECAP

Date Written: March 17, 2022

Abstract

We study how gender affects renegotiation with creditors. Using reorganization filings in the state of São Paulo in Brazil, we document that female-led debtors are 9 percentage points less likely to have their reorganization plans approved by creditors. The gender gap widens to 32 percentage points for high-loss debtors. This effect is not driven by differences in liquidation values or reorganization contracts. Using claim-level voting data, we show that the gender gap can be entirely attributed to male creditors. In line with a gender-based double standard for plan approval, female-led debtors have higher survival rates and higher return on assets after reorganization. Our findings are consistent with male creditors overextrapolating past losses of female-led debtors.

Keywords: distressed debt, Chapter 11, Corporate bankruptcy, corporate reorganization, gender discrimination

JEL Classification: G32, G33, G38, J16, K22

Suggested Citation

Manoel, Paulo and Augusto Brunassi Silva, Vinicius, Gender Gap in Corporate Reorganizations (March 17, 2022). Available at SSRN: https://ssrn.com/abstract=4060278 or http://dx.doi.org/10.2139/ssrn.4060278

Paulo Manoel (Contact Author)

University of Kentucky - Department of Finance & Quantitative Methods ( email )

Lexington, KY 40506
United States

HOME PAGE: http://paulomanoel.com

Vinicius Augusto Brunassi Silva

FECAP ( email )

Av. Liberdade, 532
Liberdade
São Paulo
Brazil

Do you want regular updates from SSRN on Twitter?

Paper statistics

Downloads
27
Abstract Views
123
PlumX Metrics