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Resolution of corporate insolvency during COVID-19 pandemic. Evidence from France
We investigate how the lockdown enforcement by French authorities is associated with the resolution of corporate insolvency. In this sense, we make a distinction between four legal procedures, namely the amicable liquidation (out-of-court exit), the judicial liquidation (court-driven exit), the rest...
Autores principales: | , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
The Author(s). Published by Elsevier Inc.
2022
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8893952/ https://www.ncbi.nlm.nih.gov/pubmed/35261416 http://dx.doi.org/10.1016/j.irle.2022.106063 |
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author | Stef, Nicolae Bissieux, Jean-Joachim |
author_facet | Stef, Nicolae Bissieux, Jean-Joachim |
author_sort | Stef, Nicolae |
collection | PubMed |
description | We investigate how the lockdown enforcement by French authorities is associated with the resolution of corporate insolvency. In this sense, we make a distinction between four legal procedures, namely the amicable liquidation (out-of-court exit), the judicial liquidation (court-driven exit), the restructuring procedure available to non-defaulted firms, and the restructuring procedure available to defaulted firms. Using a sample of 3488 non-listed and non-financial French firms, our estimates yield three major findings. First, the likelihood of judicial liquidation increased after the lifting of the quarantines compared to the pre-pandemic period. Second, the non-defaulted firms had a higher likelihood to reorganize in court during the second lockdown. Third, the lifting of the first lockdown led to a decrease in the probability of restructuring the assets of defaulted firms. Although the main objective of the lockdown was to limit spread of the virus, its enforcement has not encouraged the use of the out-of-court exit path. |
format | Online Article Text |
id | pubmed-8893952 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2022 |
publisher | The Author(s). Published by Elsevier Inc. |
record_format | MEDLINE/PubMed |
spelling | pubmed-88939522022-03-04 Resolution of corporate insolvency during COVID-19 pandemic. Evidence from France Stef, Nicolae Bissieux, Jean-Joachim Int Rev Law Econ Article We investigate how the lockdown enforcement by French authorities is associated with the resolution of corporate insolvency. In this sense, we make a distinction between four legal procedures, namely the amicable liquidation (out-of-court exit), the judicial liquidation (court-driven exit), the restructuring procedure available to non-defaulted firms, and the restructuring procedure available to defaulted firms. Using a sample of 3488 non-listed and non-financial French firms, our estimates yield three major findings. First, the likelihood of judicial liquidation increased after the lifting of the quarantines compared to the pre-pandemic period. Second, the non-defaulted firms had a higher likelihood to reorganize in court during the second lockdown. Third, the lifting of the first lockdown led to a decrease in the probability of restructuring the assets of defaulted firms. Although the main objective of the lockdown was to limit spread of the virus, its enforcement has not encouraged the use of the out-of-court exit path. The Author(s). Published by Elsevier Inc. 2022-06 2022-03-03 /pmc/articles/PMC8893952/ /pubmed/35261416 http://dx.doi.org/10.1016/j.irle.2022.106063 Text en © 2022 The Author(s) Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active. |
spellingShingle | Article Stef, Nicolae Bissieux, Jean-Joachim Resolution of corporate insolvency during COVID-19 pandemic. Evidence from France |
title | Resolution of corporate insolvency during COVID-19 pandemic. Evidence from France |
title_full | Resolution of corporate insolvency during COVID-19 pandemic. Evidence from France |
title_fullStr | Resolution of corporate insolvency during COVID-19 pandemic. Evidence from France |
title_full_unstemmed | Resolution of corporate insolvency during COVID-19 pandemic. Evidence from France |
title_short | Resolution of corporate insolvency during COVID-19 pandemic. Evidence from France |
title_sort | resolution of corporate insolvency during covid-19 pandemic. evidence from france |
topic | Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8893952/ https://www.ncbi.nlm.nih.gov/pubmed/35261416 http://dx.doi.org/10.1016/j.irle.2022.106063 |
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