Gender Gap in Corporate Reorganizations

51 Pages Posted: 6 Apr 2022 Last revised: 30 Jan 2023

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 debtor companies are less likely to have their reorganization plans approved by creditors. Using claim-level voting data in a regression with filing fixed effects, we show that male creditors are less likely than female creditors to approve the same plan if the debtor is female-led. This behavior doesn't exist for male-led debtors and is more salient for female-led debtors facing high losses. If reorganized, female-led debtors achieve higher survival rates and higher return on assets than male-led debtors, suggesting a gender-based double standard for plan approval. Our findings are consistent with a model of 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

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