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.
Performance of Brazilian companies: year effects, line of business and individual firms
Performance varies. This simple statement conceals many intricacies of strategic management. Because performance varies among individual firms, researchers can explore factors that differentiate these firms and explain...
Corwin-Schultz Bid-ask Spread Estimator in the Brazilian Stock Market
This paper tests the validity of the Corwin-Schultz bid-ask spread estimator in the Brazilian stock market. The Corwin-Schultz estimator arises as an easy way to compute asymmetric information throughout daily high and...
Understanding the Entrepreneurial Process: a Dynamic Approach
There is considerable predominance in the adoption of perspectives based on characteristics in research into entrepreneurship. However, most studies describe the entrepreneur from a static or snapshot approach; very few...
Impacts of Interactive and Diagnostic Control System Use on the Innovation Process
This research explores the innovation process in organizations based on the Management Control System (MCS). We examined the link between the diagnostic and interactive uses of management control systems and their asso...
Internationalization and Diversification Strategies of Agricultural Cooperatives: a Quantitative Study of the Agricultural Cooperatives in the State of Parana
This study investigates the impact of internationalization on the results achieved by agricultural cooperatives in the State of Parana, at the same time examining strategies for diversification of markets as well as div...