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Working Papers (2000), ESSEC Business School

Faillite et réorganisation financière : comparaison internationale et évidence empirique

The objective of this article is to present an international comparison and an evaluation of the performance of bankruptcy laws in Canada, U.S., France and U.K. on the basis of a number of "desirable" criteria. The empirical research in the bankruptcy area suggests that debtor oriented systems tend to generate higher bankruptcy costs and larger deviations from absolute priority than creditors oriented systems. From a North American perspective, the data suggest that the probability of keeping a non viable firm alive is four times larger than the probability of eliminating a non viable firm under the Canadian bankruptcy law. The inverse is true for the U.S. Chapter 11. Finally, except for France, the bankruptcy laws for all countries examined in this study provides for a direct involvement of creditors in the decision about the firm's future in the event of a financial reorganization.

MARTEL, J. (2000). Faillite et réorganisation financière : comparaison internationale et évidence empirique. ESSEC Business School.