Norms In Private Insolvency Procedures: The 'London Approach' To The Resolution Of Financial Distress

John Armour and Simon Deakin

Working Papers from Centre for Business Research, University of Cambridge

Abstract: Law and economics scholarship has recently begun to investigate the role of social norms in shaping actors' incentives. This paper presents empirical findings on the way in which a group of such norms, known collectively as the 'London Approach', guide the resolution of financial distress by creditors of large UK firms and act as a substitute for legal insolvency proceedings. It appears that regulatory pressure applied by the Bank of England may have been critical in 'seeding' these norms. The paper also examines the prospects for the London Approach's future in light of changes in the financial environment brought about by globalisation.

Keywords: social norms; corporate insolvency; London Approach; norm seeding (search for similar items in EconPapers)
JEL-codes: G33 G38 K22 Z13 (search for similar items in EconPapers)
Date: 2000-09
New Economics Papers: this item is included in nep-cfn and nep-law
Note: PRO-2
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.jbs.cam.ac.uk/wp-content/uploads/2023/05/cbrwp173.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cbr:cbrwps:wp173

Access Statistics for this paper

More papers in Working Papers from Centre for Business Research, University of Cambridge
Bibliographic data for series maintained by Ruth Newman ().