Optimal bankruptcy regime: a literature review
Abstract An optimal bankruptcy regime is one which avoids taking/giving loans during financial crisis, provides a provision for entrepreneurship, and further provides for achieving a maximum total value for the distressed firm. The present study is aimed at understanding the concept of optimal bankr...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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SpringerOpen
2023-08-01
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| Series: | Future Business Journal |
| Subjects: | |
| Online Access: | https://doi.org/10.1186/s43093-023-00245-w |
| _version_ | 1797559386767360000 |
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| author | N.V.V. Satyanarayana Puchakayala Ramanujam Veluchamy |
| author_facet | N.V.V. Satyanarayana Puchakayala Ramanujam Veluchamy |
| author_sort | N.V.V. Satyanarayana Puchakayala |
| collection | DOAJ |
| description | Abstract An optimal bankruptcy regime is one which avoids taking/giving loans during financial crisis, provides a provision for entrepreneurship, and further provides for achieving a maximum total value for the distressed firm. The present study is aimed at understanding the concept of optimal bankruptcy regime and its determinants in terms of merits and demerits. The study is purely of qualitative nature followed by the method of synthesis of 50 previous studies. The study concludes that the optimal bankruptcy regime that provides for the said three features is somehow or other helping economies to do well in terms of increased entrepreneurship, decreased number of liquidations, reduced NPAs’, and increased productive investments. It is also evident from several World Bank member countries that have opted for reorganisation of distressed businesses are experiencing the fruits of optimal bankruptcy regime in terms of achieving maximum value for the assets of distressed firms for about 71 cents on dollar and thereby entrepreneurship development. |
| first_indexed | 2024-03-10T17:44:38Z |
| format | Article |
| id | doaj.art-2bdd4bb1c9b0418ba9dffc7bcf91e15c |
| institution | Directory Open Access Journal |
| issn | 2314-7210 |
| language | English |
| last_indexed | 2024-03-10T17:44:38Z |
| publishDate | 2023-08-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Future Business Journal |
| spelling | doaj.art-2bdd4bb1c9b0418ba9dffc7bcf91e15c2023-11-20T09:33:01ZengSpringerOpenFuture Business Journal2314-72102023-08-019111010.1186/s43093-023-00245-wOptimal bankruptcy regime: a literature reviewN.V.V. Satyanarayana Puchakayala0Ramanujam Veluchamy1Bharathiar School of Management and Entrepreneur Development (BSMED), Bharathiar UniversityBharathiar School of Management and Entrepreneur Development (BSMED), Bharathiar UniversityAbstract An optimal bankruptcy regime is one which avoids taking/giving loans during financial crisis, provides a provision for entrepreneurship, and further provides for achieving a maximum total value for the distressed firm. The present study is aimed at understanding the concept of optimal bankruptcy regime and its determinants in terms of merits and demerits. The study is purely of qualitative nature followed by the method of synthesis of 50 previous studies. The study concludes that the optimal bankruptcy regime that provides for the said three features is somehow or other helping economies to do well in terms of increased entrepreneurship, decreased number of liquidations, reduced NPAs’, and increased productive investments. It is also evident from several World Bank member countries that have opted for reorganisation of distressed businesses are experiencing the fruits of optimal bankruptcy regime in terms of achieving maximum value for the assets of distressed firms for about 71 cents on dollar and thereby entrepreneurship development.https://doi.org/10.1186/s43093-023-00245-wOptimal bankruptcy regimeQualitative studyZombie lendingEntrepreneurshipReorganisation and liquidation |
| spellingShingle | N.V.V. Satyanarayana Puchakayala Ramanujam Veluchamy Optimal bankruptcy regime: a literature review Future Business Journal Optimal bankruptcy regime Qualitative study Zombie lending Entrepreneurship Reorganisation and liquidation |
| title | Optimal bankruptcy regime: a literature review |
| title_full | Optimal bankruptcy regime: a literature review |
| title_fullStr | Optimal bankruptcy regime: a literature review |
| title_full_unstemmed | Optimal bankruptcy regime: a literature review |
| title_short | Optimal bankruptcy regime: a literature review |
| title_sort | optimal bankruptcy regime a literature review |
| topic | Optimal bankruptcy regime Qualitative study Zombie lending Entrepreneurship Reorganisation and liquidation |
| url | https://doi.org/10.1186/s43093-023-00245-w |
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