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The Economics of Bankrupcy, Reorganisation and Liquidation: Lessons for East European Transitional Economies

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  • Iraj Hashi

Abstract

The purpose of this paper is to analyse the economic implications of the bankruptcy procedures in Western market economies with a view to draw appropriate lessons for the transitional economies of Central and Eastern Europe. In Section II, we shall discuss the bankruptcy procedures in four major market eocnomies, emphasising the conditions under which the financially distressed firms are reorganised or liquidated. Section III focuses on the relative efficacy of the 'reorganisation' option in comparison with the 'liquidation' option of the bankruptcy procedures. Section IV highlights the lessons that East European transitional economies may learn from the experience of market economies, drawing attention to a number of important areas of concern in any discussion of the design and implementation of bankruptcy procedures.

Suggested Citation

  • Iraj Hashi, 1995. "The Economics of Bankrupcy, Reorganisation and Liquidation: Lessons for East European Transitional Economies," CASE Network Studies and Analyses 0041, CASE-Center for Social and Economic Research.
    • Handle: RePEc:sec:cnstan:0041
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    Cited by:

    1. Moldovan Rucsandra Livia & Achim Sorin Adrian, 2009. "Considerations On Reorganization. A Comparison Of Reorganization Rates In Eastern Europe," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 3(1), pages 1049-1054, May.
    2. Régis BLAZY & Nicolae STEF, 2015. "How do bankruptcy systems perform in Eastern Europe?," Working Papers of LaRGE Research Center 2015-07, Laboratoire de Recherche en Gestion et Economie (LaRGE), Université de Strasbourg.
    3. Régis Blazy & Nicolae Stef, 2020. "Bankruptcy procedures in the post-transition economies," European Journal of Law and Economics, Springer, vol. 50(1), pages 7-64, August.
    4. Cakir, Murat, 2005. "Firma Başarısızlığının Dinamiklerinin Belirlenmesinde Makina Öğrenmesi Teknikleri: Ampirik Uygulamalar ve Karşılaştırmalı Analiz [Machine Learning Techniques in Determining the Dynamics of Corporat," MPRA Paper 55975, University Library of Munich, Germany.

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