Bank Responses to Corporate Reorganization: Evidence from an Emerging Economy

Bank Responses to Corporate Reorganization: Evidence from an Emerging Economy

Abstract This study analyzes a unique dataset of 125 corporate reorganization filings in Brazil from 2006 to 2016 to understand the role of bank creditor seniority in bankruptcy outcomes of small- and medium-sized companies. We find that conflict between bank creditor classes is relevant for explaining reorganization outcomes and that it occurs when organizations are in the money. Additionally, bank seniority matters more than the bank’s debt share for explaining bankruptcy outcomes in creditor-oriented regimes. Finally, we find a concave relationship between favorable votes and the number of banks involved and between favorable votes and a company’s age.

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Main Authors: Oreng,Mariana, Saito,Richard, Silva,Vinicius A. B.
Format: Digital revista
Language:English
Published: ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração 2019
Online Access:http://old.scielo.br/scielo.php?script=sci_arttext&pid=S1807-76922019000100301
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spelling oai:scielo:S1807-769220190001003012019-04-29Bank Responses to Corporate Reorganization: Evidence from an Emerging EconomyOreng,MarianaSaito,RichardSilva,Vinicius A. B. bankruptcy reorganization conflict between creditors creditors’ bargain model Abstract This study analyzes a unique dataset of 125 corporate reorganization filings in Brazil from 2006 to 2016 to understand the role of bank creditor seniority in bankruptcy outcomes of small- and medium-sized companies. We find that conflict between bank creditor classes is relevant for explaining reorganization outcomes and that it occurs when organizations are in the money. Additionally, bank seniority matters more than the bank’s debt share for explaining bankruptcy outcomes in creditor-oriented regimes. Finally, we find a concave relationship between favorable votes and the number of banks involved and between favorable votes and a company’s age.info:eu-repo/semantics/openAccessANPAD - Associação Nacional de Pós-Graduação e Pesquisa em AdministraçãoBAR - Brazilian Administration Review v.16 n.1 20192019-01-01info:eu-repo/semantics/articletext/htmlhttp://old.scielo.br/scielo.php?script=sci_arttext&pid=S1807-76922019000100301en10.1590/1807-7692bar2019180053
institution SCIELO
collection OJS
country Brasil
countrycode BR
component Revista
access En linea
databasecode rev-scielo-br
tag revista
region America del Sur
libraryname SciELO
language English
format Digital
author Oreng,Mariana
Saito,Richard
Silva,Vinicius A. B.
spellingShingle Oreng,Mariana
Saito,Richard
Silva,Vinicius A. B.
Bank Responses to Corporate Reorganization: Evidence from an Emerging Economy
author_facet Oreng,Mariana
Saito,Richard
Silva,Vinicius A. B.
author_sort Oreng,Mariana
title Bank Responses to Corporate Reorganization: Evidence from an Emerging Economy
title_short Bank Responses to Corporate Reorganization: Evidence from an Emerging Economy
title_full Bank Responses to Corporate Reorganization: Evidence from an Emerging Economy
title_fullStr Bank Responses to Corporate Reorganization: Evidence from an Emerging Economy
title_full_unstemmed Bank Responses to Corporate Reorganization: Evidence from an Emerging Economy
title_sort bank responses to corporate reorganization: evidence from an emerging economy
description Abstract This study analyzes a unique dataset of 125 corporate reorganization filings in Brazil from 2006 to 2016 to understand the role of bank creditor seniority in bankruptcy outcomes of small- and medium-sized companies. We find that conflict between bank creditor classes is relevant for explaining reorganization outcomes and that it occurs when organizations are in the money. Additionally, bank seniority matters more than the bank’s debt share for explaining bankruptcy outcomes in creditor-oriented regimes. Finally, we find a concave relationship between favorable votes and the number of banks involved and between favorable votes and a company’s age.
publisher ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração
publishDate 2019
url http://old.scielo.br/scielo.php?script=sci_arttext&pid=S1807-76922019000100301
work_keys_str_mv AT orengmariana bankresponsestocorporatereorganizationevidencefromanemergingeconomy
AT saitorichard bankresponsestocorporatereorganizationevidencefromanemergingeconomy
AT silvaviniciusab bankresponsestocorporatereorganizationevidencefromanemergingeconomy
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