The Effects of Bankruptcy Laws on Capital Structure

Yao Ye ； Mingze Tang ； Jiaqi Feng

《Frontiers in Economics and Management》 2卷11期 (2021/11) Pp. 286-293

https://doi.org/10.6981/FEM.202111_2(11).0039

摘要

This paper examines the impact of bankruptcy laws in various countries with distinct insolvency provision and relates influences from such code to corporate capital structure's choice. We basically select some papers concerned with bankruptcy code and financing choice to form several hypotheses which will be consistent in the example of our empirical tests. On the hand, firms are categorized into small business and big corporate, as well as start‐up firm; bankruptcy code is also differentiated. Provided competitive and perfect market, our findings have clear implications that under DFS, priority transfer into debtor, whereas equity holders remain their rights. With the correlation between insolvency exemptions and capital structure choice, as well as direct analysis of different cases under featured homestead system, 6 factors get involved.

關鍵字

Bankruptcy Code ； Capital Structure ； EFS (Equity‐Friendly System) ； DFS (Debt‐Friendly System)

參考文獻

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