EconPapers    
Economics at your fingertips  
 

Parameters of insolvency proceedings in developed countries and their dependence on economic performance

Markéta Arltová, Jan Plaček and Luboš Smrčka

Ekonomika a Management, 2015, vol. 2015, issue 2

Abstract: The work stems from the hypothesis according to which there is a relationship between the economic performance of a specific country and the results achieved in the given country in insolvency proceedings. To compare the efficiency of the economy, the indicator of gross domestic product per head of population is used for comparative purposes. The authors here use as a departure point the assumption that high economic efficiency, i.e. a high gross domestic product per one inhabitant is possible only in a cases where a high-quality legal and regulatory framework exists. In simpler terms, one could speak of the level of enforceability of law. In this logic, then, it necessarily applies that more developed countries should have better results of insolvency proceedings than less developed countries. Data on yields for creditors, costs for and duration of proceedings are used as a gauge of quality of insolvency proceedings. In this selection, the authors proceed from the conviction that the yield for creditors is the only entirely objective gauge of the success of insolvency proceedings, whilst they further assume that the yield is indirectly proportional to the costs and duration of proceedings. In this area, the authors refer to older works. The authors then declare that the fundamental hypothesis on the relationship of economic efficiency and yield for creditors from insolvency proceedings has successfully been proved. Similarly, further assumptions of the author team have also been proved. Part of the work also includes comparison of data from international survey with real results of insolvency proceedings in the Czech Republic, where, in contrast to other developed countries, there are relatively comprehensive sources based on analyses of specific cases.

Keywords: bankruptcy; insolvency; insolvence; Insolvenční řízení; Úpadek; Insolvency proceedings; Gross domestic product; Costs of proceedings; Yields for creditors; Hrubý domácí product; Náklady řízení; Výnos pro věřitele (search for similar items in EconPapers)
JEL-codes: G30 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.vse.cz/eam/download.php?jnl=eam&pdf=246.pdf
http://www.vse.cz/eam/246 (text/html)
free of charge

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:prg:jnleam:v:2015:y:2015:i:2:id:246

Ordering information: This journal article can be ordered from
Redakce Ekonomika a management, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3
http://www.vse.cz/eam/

Access Statistics for this article

Ekonomika a Management is currently edited by Eva Kislingerová

More articles in Ekonomika a Management from Prague University of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Stanislav Vojir ().

 
Page updated 2022-08-28
Handle: RePEc:prg:jnleam:v:2015:y:2015:i:2:id:246