haku: @author Israel, R. / yhteensä: 9
viite: 5 / 9
| Tekijä: | Berkovitch, E. Israel, R. Zender, J. |
| Otsikko: | Optimal bankruptcy law and firm-specific investments |
| Lehti: | European Economic Review
1997 : VOL. 41:3-5, p. 487-498 |
| Asiasana: | INVESTMENT BANKRUPTCY ECONOMICS |
| Kieli: | eng |
| Tiivistelmä: | In this paper, the authors characterise an optimal bankruptcy law that takes into consideration the incentives of managers to invest in firm-specific human capital. The authors show that the optimal bankruptcy law is biased towards the management team, and may be implemented by the use of a "restricted auction" mechanism, in which creditors have the right to refuse bankruptcy, but are not allowed to bid for the firm. The bankruptcy law is needed as a commitment device to implement the optimal outcome. |
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