Does commercial court organisation affect firms’ bankruptcy rate? evidence from the french judicial reform

Giuseppe Arcuri (), Nadine Levratto () and Marianna Succurro ()
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Giuseppe Arcuri: University Paris 1 Panthéon-Sorbonne, PRISM, EconomiX
Nadine Levratto: University Paris Nanterre
Marianna Succurro: University of Calabria

European Journal of Law and Economics, 2023, vol. 55, issue 3, No 6, 573-601

Abstract: Abstract The aim of this paper is to evaluate the impact of the 2010 French judicial reform of commercial courts on firms’ financial bankruptcy rate at the municipality level. The research is based on a panel dataset containing microdata between 2004 and 2015, taken from Banque de France and the French National Institute of Statistics. We use a difference-in-differences analysis comparing the economic behaviour of firms in municipalities where the reform was implemented with those where it was not before and after the reform. The econometric findings indicate that municipalities that changed commercial courts because of the reform experienced a decrease in firms’ bankruptcy rate but that changing the judicial map did not impact the arbitrage between liquidation and reorganisation of the insolvent companies. Some policy implications conclude the work.

Keywords: Bankruptcy; Judiciary; Reform; Evaluation; Judicial geography (search for similar items in EconPapers)
JEL-codes: D22 H11 H41 K40 L25 (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s10657-023-09765-w

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