The Costs of Bankruptcy : Chapter 7 Liquidation versus Chapter 11 Reorganization

Abstract

Our paper explores a comprehensive sample of small and large corporate bankruptcies in Arizona and New York from 1995 to 2001. Bankruptcy costs are very heterogeneous and sensitive to the measurement method used. We find that Chapter 7 liquidations appear to be no faster or cheaper (in terms of direct expense) than Chapter 11 reorganizations. However… (More)

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Cite this paper

@inproceedings{Zhu2006TheCO, title={The Costs of Bankruptcy : Chapter 7 Liquidation versus Chapter 11 Reorganization}, author={Ning Zhu and Th{\'e}r{\'e}sa Kwon and Vanessa Janowski and Steven N. Kaplan and Edward Morrison and Dina Naples-Layish and David Scharfstein}, year={2006} }