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Analysis of the Capital Structure of Domestic Corporations Preceding a Bankruptcy
[Rozbor kapitálové struktury tuzemských korporací před úpadkem]

Author

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  • Tatiana Škerlíková

Abstract

The aim of this paper is on the issue of low returns in the Czech Republic to offer a new perspective. Article concerns the agency theory before the bankruptcy proceedings with regard to the specifics of Czech Republic. Given that bank lenders have better bargaining power in comparison with other classes of creditors, the view focuses on their activity while initiating bankruptcy. The article tries to estimate what percentage of insolvencies could be launched in the Czech Republic by bank lender based on the specific position of individual groups of debtors before insolvency proceedings. Bank lenders have stronger monitoring and enforcement means, which gives them a specific opportunity to initiate proceedings in a better timeframe than other creditors.

Suggested Citation

  • Tatiana Škerlíková, 2014. "Analysis of the Capital Structure of Domestic Corporations Preceding a Bankruptcy [Rozbor kapitálové struktury tuzemských korporací před úpadkem]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2014(4), pages 70-83.
    • Handle: RePEc:prg:jnlcfu:v:2014:y:2014:i:4:id:424:p:70-83
    DOI: 10.18267/j.cfuc.424
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    References listed on IDEAS

    as
    1. Michael R. Roberts & Amir Sufi, 2009. "Control Rights and Capital Structure: An Empirical Investigation," Journal of Finance, American Finance Association, vol. 64(4), pages 1657-1695, August.
    2. Nini, Greg & Smith, David C. & Sufi, Amir, 2009. "Creditor control rights and firm investment policy," Journal of Financial Economics, Elsevier, vol. 92(3), pages 400-420, June.
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    More about this item

    Keywords

    Bankruptcy boundary; Classes of claimants; Debt structure; Bank lenders; Creditor control; Hranice úpadku; Třídy věřitelů; Struktura dluhu; Bankovní věřitel; Vyjednávací pozice věřitelů;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation

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