Does Merging Small Bankruptcy Courts Increase Their Efficiency?

Anne Epaulard and Chloé Zapha
Additional contact information
Anne Epaulard: OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po, LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique
Chloé Zapha: LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique

Working Papers from HAL

Abstract: We estimate the impact of a 2009 reform that merged small bankruptcy courts on the qualityof their rulings. A conceptual framework enables us to link difference-in-difference estimatesto the impact of the reform on Type 1 errors (restructuring a non-viable firm) and Type 2errors (liquidating a viable firm). We apply this framework to an (almost) exhaustive sampleof 600,000 bankruptcy cases in France that started between 2000 and 2019. The reformunambiguously reduces Type 1 errors while having no impact on Type 2 errors. Post-mergercourt behavior is determined more by that of the absorbing court than by that of theabsorbed one.

Keywords: Corporate Bankruptcy; Commercial Courts (search for similar items in EconPapers)
Date: 2026-02-04
Note: View the original document on HAL open archive server: https://hal.science/hal-05492507v1
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hal.science/hal-05492507v1/document (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:hal:wpaper:hal-05492507

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().