Financial stability strategies: Bankruptcy courts and corporate capital structure adjustment

Yang Cui and Yanliang Zhang

International Review of Economics & Finance, 2025, vol. 99, issue C

Abstract: This paper examines the effects of bankruptcy courts on the adjustment of corporate capital structures among A-share listed companies from 2010 to 2022, utilizing a multi-timepoint difference-in-differences model. The findings reveal that the establishment of bankruptcy courts significantly promotes the adjustment of corporate capital structures. This effect is more profound in companies operating under stronger rule-of-law environments, those with higher capital intensity, and those with lower commercial credit. Further mechanism analysis suggests that easing financing constraints and enhancing internal liquidity management are potential pathways through which bankruptcy courts facilitate these adjustments.

Keywords: Bankruptcy courts; Corporate capital structure adjustment; Financing constraints; Internal liquidity management (search for similar items in EconPapers)
JEL-codes: D21 G33 K20 M21 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1059056025001893
Full text for ScienceDirect subscribers only

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:eee:reveco:v:99:y:2025:i:c:s1059056025001893

DOI: 10.1016/j.iref.2025.104026

Access Statistics for this article

International Review of Economics & Finance is currently edited by H. Beladi and C. Chen

More articles in International Review of Economics & Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().