The Costs of Bankruptcy Chapter 7 Cash Auctions vs. Chapter 11 Bargaining
71 Pages Posted: 3 Aug 2004
Date Written: March 15, 2004
Abstract
Our paper explores a comprehensive sample of both small and large corporate bankruptcies in Arizona and New York from 1995-2001. We find that bankruptcy costs are very heterogeneous and sensitive to measurement method. Still, Chapter 7 liquidations seem more expensive in direct and equally expensive in indirect costs, than Chapter 11 bankruptcies. The paper provides a large number of further empirical regularities.
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Debt Enforcement Around the World
By Simeon Djankov, Oliver Hart, ...
-
Debt Enforcement Around the World
By Simeon Djankov, Oliver Hart, ...
-
By Arturo Bris, Ivo Welch, ...
-
By Stuart C. Gilson, Edith S. Hotchkiss, ...
-
By Lawrence A. Weiss and Karen H. Wruck
-
Asset Efficiency and Reallocation Decisions of Bankrupt Firms
-
Bankruptcy Around the World: Explanations of its Relative Use
By Stijn Claessens and Leora F. Klapper
-
Do Bankruptcy Codes Matter? A Study of Defaults in France, Germany and the UK
By Sergei Davydenko and Julian R. Franks
-
Vulture Investors and the Market for Control of Distressed Firms