Two New Measures of Bankruptcy Efficiency

SUERF Study Series, 2004/6

53 Pages Posted: 16 Mar 2004 Last revised: 7 Apr 2009

See all articles by Paolo Santella

Paolo Santella

Single Resolution Board

Riccardo Brogi

Associazione Bancaria Italiana - Ufficio Valutazioni Economiche

Multiple version iconThere are 2 versions of this paper

Date Written: December 1, 2004

Abstract

This study is aimed at developing new empirical models for evaluating the efficiency of bankruptcy legislations. The paper is divided in three parts. In the first part, we analyze from a conceptual point of view the effects on debtor firms of the lack of creditors' powers in bankruptcy. In the second part, we develop a new rating method for bankruptcy legislations according to their degree of creditors protection and apply it to five European countries. In the third part, we introduce a new approach for empirically estimating the efficiency of bankruptcy legislation based on the cost of banking credit and we test it on the Italian case. In particular, the unprecedented tool being used in the third section consists of the New Basel Capital Accord, i.e. the capital adequacy regulatory framework that is about to be put into effect as of the end of 2006.

Keywords: Bankuptcy, insolvency, corporate governance, banking, regulation efficiency

JEL Classification: G33

Suggested Citation

Santella, Paolo and Brogi, Riccardo, Two New Measures of Bankruptcy Efficiency (December 1, 2004). SUERF Study Series, 2004/6, Available at SSRN: https://ssrn.com/abstract=516725

Paolo Santella

Single Resolution Board

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Riccardo Brogi (Contact Author)

Associazione Bancaria Italiana - Ufficio Valutazioni Economiche ( email )

Piazza del Gesu, 49
Rome 00186
Italy
+39066767402 (Phone)
+390667678030 (Fax)

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