Bank Responses to Corporate Reorganization: Evidence from an Emerging Economy
Journal Title: BAR: Brazilian Administration Review - Year 2016, Vol 16, Issue 1
Abstract
This study analyzes a unique dataset of 125 corporate reorganization filings in Brazil from 2006 to 2016 to understand the role of bank creditor seniority in bankruptcy outcomes of small- and medium-sized companies. We find that conflict between bank creditor classes is relevant for explaining reorganization outcomes and that it occurs when organizations are in the money. Additionally, bank seniority matters more than the bank’s debt share for explaining bankruptcy outcomes in creditor-oriented regimes. Finally, we find a concave relationship between favorable votes and the number of banks involved and between favorable votes and a company’s age.
Authors and Affiliations
Oreng, Mariana; Saito, Richard; Silva, Vinicius A. B.
Keywords
Related Articles
- EP ID EP40676
- DOI http://dx.doi.org/10.1590/1807-7692bar2019180053
- Views 241
- Downloads 0
Archetypes of Organizational Success and Failure
This paper presents inductive theoretical work inspired by the empirical study of the high-tech rivals General Electric and Westinghouse. Comparative historical analysis suggests that each firm’s responses to five orga...
Willingness to Try Innovative Food Products: a Comparison between British and Brazilian Consumers
In this study we investigate the consumer’s willingness to try innovative food products in the context of the metropolitan area of Porto Alegre in Brazil and Cirencester in England, UK. Innovation in the food industry i...
A Bibliometric Study on Culture Research in International Business
National cultures and cultural differences provide a crucial component of the international business (IB) research context. We conducted a bibliometric study of articles published in seven leading IB journals over a per...
The Role of Bond Covenants and Short-Term Debt: Evidence from Brazil
This paper examines the role of financial covenants as substitutes for short-term debt and a possible trade off between short-term debt and long-term debt, especially for companies with growth opportunities. Using a sam...
The Variance Composition of Firm Growth Rates
Firms exhibit a wide variability in growth rates. This can be seen as another manifestation of the fact that firms are different from one another in several respects. This study investigated this variability using the v...