The Costs of Bankruptcy Chapter 7 Cash Auctions vs. Chapter 11 Bargaining
Preprint
- 15 March 2004
- preprint
- Published by Elsevier in SSRN Electronic Journal
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.Keywords
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