Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/315225 
Year of Publication: 
2024
Citation: 
[Journal:] European Journal of Law and Economics [ISSN:] 1572-9990 [Volume:] 58 [Issue:] 3 [Publisher:] Springer US [Place:] New York [Year:] 2024 [Pages:] 397-425
Publisher: 
Springer US, New York
Abstract: 
Abstract We utilize micro-level data on corporate liquidation bankruptcies in Slovenia to conduct the first systematic quantitative investigation of the impact of creditors' committees (CCs) on liquidation bankruptcy outcomes. Slovenian law permits, but does not mandate, the establishment of a CC in liquidation bankruptcy proceedings, ensuring variation in CC incidence across cases. To address the non-random formation of CCs, we use propensity score matching and employ a rich set of covariates. Our findings reveal that CCs boost the liquidation value of bankrupt debtors' assets, thereby facilitating recovery, particularly for priority and ordinary unsecured creditors. Additionally, CCs elevate the overall rate of creditors' recovery relative to the value of liquidated assets. However, CCs also prolong the duration of proceedings and increase the likelihood of litigation. Our analysis thus underscores the multifaceted nature of the effect of institutionalized creditor representation on the efficacy of liquidation bankruptcy proceedings.
Subjects: 
Corporate bankruptcy
Liquidation bankruptcy proceedings
Creditors' committees
Debt recovery
Duration
Slovenia
G33
K22
P12
D02
Persistent Identifier of the first edition: 
Additional Information: 
G33;K22;P12;D02
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version
Appears in Collections:

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.