The lemon market of insolvency proceedings in Spain in the new normal: Information, asymmetry, and adverse selection problems

Insolvency proceedings are strategic for the competitiveness of a national economy. The new law, but also new financial situation of organizations affect the new normal of insolvency framework. In Europe, standards aimed at creating an efficient framework for corporate insolvency resolution are cons...

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Autores: Olabarrieta, Unai, San José Ruiz de Aguirre, Leire, Araujo de la Mata, Andrés
Tipo de recurso: artículo
Fecha de publicación:2023
País:España
Institución:Universidad del País Vasco
Repositorio:Addi. Archivo Digital para la Docencia y la Investigación
OAI Identifier:oai:addi.ehu.eus:10810/64108
Acceso en línea:http://hdl.handle.net/10810/64108
Access Level:acceso abierto
Palabra clave:insolvency proceedings
efficiency
bankruptcy
adverse selection
lemon market
information asymmetries
moral hazard
insolvency administrator
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spelling The lemon market of insolvency proceedings in Spain in the new normal: Information, asymmetry, and adverse selection problemsOlabarrieta, UnaiSan José Ruiz de Aguirre, LeireAraujo de la Mata, Andrésinsolvency proceedingsefficiencybankruptcyadverse selectionlemon marketinformation asymmetriesmoral hazardinsolvency administratorInsolvency proceedings are strategic for the competitiveness of a national economy. The new law, but also new financial situation of organizations affect the new normal of insolvency framework. In Europe, standards aimed at creating an efficient framework for corporate insolvency resolution are constantly changing to enhance the efficiency of such mechanisms. This pursuit contrasts with the lack of specific efficiency data available to both legislators and researchers, there are no solid statistics to investigate the phenomenon from the perspective of its efficiency, which makes it impossible in practice to investigate its explanatory variables. Previous studies have led us to reflect on key information asymmetry and adverse selection problems resulting from a gap between the new challenges on insolvencies processes and options, because the lack of information. Based on this reflection, we have identified parallelisms between the lemon market, and current insolvency proceedings in Spain. Although, the legal system is modified, the insolvency process itself is a drag, for the achievement of the long-awaited efficiency of the process. It will be necessary to change, not only the legislation, but also the information provided, and create a new insolvency system because actual has “lemons signals”, this circumstance is producing negative effects on the efficiency and competence of a key figure in the process: the insolvency administrator.The authors declare that they have received financial support to conduct research, write and/or publish this article: this research was funded by the Emilio Soldevilla Foundation for Research and Development in Business Economics (Fundación Emilio Soldevilla para la Investigación y el Desarrollo en Economía de la Empresa – FESIDE; FESIDE023/005TI) and University of the Basque Country (PES20, GIU22/03).Taylor & Francis202420242023info:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10810/64108reponame:Addi. Archivo Digital para la Docencia y la Investigacióninstname:Universidad del País VascoIngléshttps://www.tandfonline.com/doi/full/10.1080/23311975.2023.2266656?src=info:eu-repo/semantics/openAccesshttp://creativecommons.org/licenses/by/3.0/es/© 2023 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. The terms on which this article has been published allow the posting of the Accepted Manuscript in a repository by the author(s) or with their consent.Atribución 3.0 Españaoai:addi.ehu.eus:10810/641082026-06-18T09:23:17Z
dc.title.none.fl_str_mv The lemon market of insolvency proceedings in Spain in the new normal: Information, asymmetry, and adverse selection problems
title The lemon market of insolvency proceedings in Spain in the new normal: Information, asymmetry, and adverse selection problems
spellingShingle The lemon market of insolvency proceedings in Spain in the new normal: Information, asymmetry, and adverse selection problems
Olabarrieta, Unai
insolvency proceedings
efficiency
bankruptcy
adverse selection
lemon market
information asymmetries
moral hazard
insolvency administrator
title_short The lemon market of insolvency proceedings in Spain in the new normal: Information, asymmetry, and adverse selection problems
title_full The lemon market of insolvency proceedings in Spain in the new normal: Information, asymmetry, and adverse selection problems
title_fullStr The lemon market of insolvency proceedings in Spain in the new normal: Information, asymmetry, and adverse selection problems
title_full_unstemmed The lemon market of insolvency proceedings in Spain in the new normal: Information, asymmetry, and adverse selection problems
title_sort The lemon market of insolvency proceedings in Spain in the new normal: Information, asymmetry, and adverse selection problems
dc.creator.none.fl_str_mv Olabarrieta, Unai
San José Ruiz de Aguirre, Leire
Araujo de la Mata, Andrés
author Olabarrieta, Unai
author_facet Olabarrieta, Unai
San José Ruiz de Aguirre, Leire
Araujo de la Mata, Andrés
author_role author
author2 San José Ruiz de Aguirre, Leire
Araujo de la Mata, Andrés
author2_role author
author
dc.subject.none.fl_str_mv insolvency proceedings
efficiency
bankruptcy
adverse selection
lemon market
information asymmetries
moral hazard
insolvency administrator
topic insolvency proceedings
efficiency
bankruptcy
adverse selection
lemon market
information asymmetries
moral hazard
insolvency administrator
description Insolvency proceedings are strategic for the competitiveness of a national economy. The new law, but also new financial situation of organizations affect the new normal of insolvency framework. In Europe, standards aimed at creating an efficient framework for corporate insolvency resolution are constantly changing to enhance the efficiency of such mechanisms. This pursuit contrasts with the lack of specific efficiency data available to both legislators and researchers, there are no solid statistics to investigate the phenomenon from the perspective of its efficiency, which makes it impossible in practice to investigate its explanatory variables. Previous studies have led us to reflect on key information asymmetry and adverse selection problems resulting from a gap between the new challenges on insolvencies processes and options, because the lack of information. Based on this reflection, we have identified parallelisms between the lemon market, and current insolvency proceedings in Spain. Although, the legal system is modified, the insolvency process itself is a drag, for the achievement of the long-awaited efficiency of the process. It will be necessary to change, not only the legislation, but also the information provided, and create a new insolvency system because actual has “lemons signals”, this circumstance is producing negative effects on the efficiency and competence of a key figure in the process: the insolvency administrator.
publishDate 2023
dc.date.none.fl_str_mv 2023
2024
2024
dc.type.none.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv http://hdl.handle.net/10810/64108
url http://hdl.handle.net/10810/64108
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.relation.none.fl_str_mv https://www.tandfonline.com/doi/full/10.1080/23311975.2023.2266656?src=
dc.rights.none.fl_str_mv info:eu-repo/semantics/openAccess
http://creativecommons.org/licenses/by/3.0/es/
Atribución 3.0 España
eu_rights_str_mv openAccess
rights_invalid_str_mv http://creativecommons.org/licenses/by/3.0/es/
Atribución 3.0 España
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Taylor & Francis
publisher.none.fl_str_mv Taylor & Francis
dc.source.none.fl_str_mv reponame:Addi. Archivo Digital para la Docencia y la Investigación
instname:Universidad del País Vasco
instname_str Universidad del País Vasco
reponame_str Addi. Archivo Digital para la Docencia y la Investigación
collection Addi. Archivo Digital para la Docencia y la Investigación
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