Reorganization or liquidation: Bankruptcy choice and firm dynamics

D Corbae, P D'Erasmo - The Review of Economic Studies, 2021 - academic.oup.com
In this article, we ask how bankruptcy law affects the financial decisions of corporations and
its implications for firm dynamics. According to current US law, firms have two bankruptcy …

Credit and firm-level volatility of employment

V Quadrini, Q Sun - Journal of the European Economic …, 2018 - academic.oup.com
We study a firm dynamics model where access to credit improves the bargaining position of
firms with workers and increases the incentive to hire. To evaluate the importance of the …

Financial development, default rates and credit spreads

A Peri, O Rachedi - The Economic Journal, 2020 - academic.oup.com
US corporate default rates increased dramatically from an annual average of 0.32%
between 1950 and 1984 up to 1.65% since 1985. Meanwhile, credit spreads rose by just 6 …

Evolution of debtor rights

D Kim - Jacobs Levy Equity Management Center for …, 2019 - papers.ssrn.com
Debtor rights vis-a-vis creditor during bankruptcy can evolve over time due to changes in the
nature of the prevailing bankruptcy law and its practice. I empirically study such a time-series …