How do insolvency codes affect a firm’s investment?
[EN] This paper provides an ex ante analysis of the effect of financial insolvency codes on investment by examining the main characteristics embodied in several codes that may cause investment distortions. The results from the estimation of an extended version of the q model of investment show a neg...
| Autores: | , , |
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| Tipo de recurso: | artículo |
| Estado: | Versión publicada |
| Fecha de publicación: | 2008 |
| País: | España |
| Institución: | Universidad de Salamanca (USAL) |
| Repositorio: | GREDOS. Repositorio Institucional de la Universidad de Salamanca |
| OAI Identifier: | oai:gredos.usal.es:10366/149752 |
| Acceso en línea: | http://hdl.handle.net/10366/149752 |
| Access Level: | acceso abierto |
| Palabra clave: | Insolvency codes Investment Insolvency costs 5311.02 Gestión Financiera 5307.13 Teoría de la Inversión 5311 Organización y Dirección de Empresas |
| Sumario: | [EN] This paper provides an ex ante analysis of the effect of financial insolvency codes on investment by examining the main characteristics embodied in several codes that may cause investment distortions. The results from the estimation of an extended version of the q model of investment show a negative relationship between ex ante insolvency costs and investment. Furthermore, most of the analysed characteristics of insolvency codes negatively impact on investment; however, the magnitude of this effect is greater concerning those of reorganization without creditors’ consent and creditors’ lack of control, as compared to those of automatic stay and the violation of absolute priority. |
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