Please use this identifier to cite or link to this item: http://hdl.handle.net/11718/21522
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dc.contributor.authorAbidi, Qambar
dc.contributor.TAC-ChairSinha, Sidharth
dc.contributor.TAC-MemberJoshy, Jacob
dc.contributor.TAC-MemberSriram, Karthik
dc.date.accessioned2019-04-13T02:33:23Z
dc.date.available2019-04-13T02:33:23Z
dc.date.issued2019
dc.identifier.urihttp://hdl.handle.net/11718/21522
dc.description.abstractBankruptcy code is an important determinant of the balance of control between creditors and debtors, during the state-supervised bankruptcy resolution process. In this thesis, across three essays, we study two bankruptcy code reforms: Bankruptcy Abuse Prevention and Consumer Protection Act 2005 (BAPCPA) in the United States, and Insolvency and Bankruptcy Code 2016 (IBC) in India. We demonstrate that BAPCPA and IBC significantly improve creditor protection. Further, using these reforms as exogenous shocks, we examine the effect of increased creditor protection on the state-supervised corporate reorganization process and its outcomes. The first essay finds mixed evidence for gain in efficiency in Chapter 11, due to increase in creditor protection through BAPCPA. Using cost and screening ability as the efficiency criteria, we find that BAPCPA results in lower bankruptcy cost, as proxied by the Chapter 11 duration. We however, fail to find evidence for improvement in screening ability of Chapter 11, as estimated by the emergence of bankrupt firms from Chapter 11 and their continued survival. The second essay examines the moderating effect of increased creditor protection on the role of bankruptcy courts as Chapter 11 adjudicating agencies. We find that increased creditor protection in post-BAPCPA period, encourage a race-to-the-top as a result of competition within bankruptcy courts due to forum shopping. The results provide evidence contrary to the stylised fact of relatively efficient reorganization process at Delaware bankruptcy court and the dominant narrative of race-to-the-bottom due to forum shopping. The third essay is a preliminary examination of the effect of IBC in India, on firm level credit characteristics. For our analysis, we use panel of firm-level data for cost and amount of debt for BSE and NSE listed firms. Our results fail to find evidence of desired effect of improvement in firm credit characteristics with strengthening of creditor rights. Our results however, are in line with the liquidation bias observed by Vig (2013) for the earlier, SARFAESI reform in India.en_US
dc.publisherIndian Institute of Management Ahmedabaden_US
dc.subjectBankruptcyen_US
dc.subjectBankruptcy code reformsen_US
dc.subjectCreditor protectionen_US
dc.subjectReorganization efficiencyen_US
dc.subjectBankruptcy courtsen_US
dc.subjectCredit marketen_US
dc.titleRegulatory reforms and state supervised corporate bankruptcy reorganizationen_US
dc.typeThesisen_US
Appears in Collections:Thesis and Dissertations

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