Corporate Bankruptcy and Survival on the Market: Lessons from Evolutionary Economics
Katarzyna Boratynska ()
Additional contact information
Katarzyna Boratynska: Warsaw University of Life Sciences
No 126/2015, Working Papers from Institute of Economic Research
The following paper is a theoretical and empirical study. The terminological differences between bankruptcy and insolvency have been indicated and compared in the article. Most frequently considered aspects of bankruptcy appear in definitions. The first of them emphasises the economic character of bankruptcy. Insolvency is a culmination of a lack of financial means and the loss of solvency, which does not have a fading tendency but develops into a permanent phenomenon. In legal terms, solvency is an institution, whose purpose is to stop the accumulation of debts and most frequently it consists on the liquidation of the debtor's estate. A critical review of the scientific achievements of the representatives of evolutionary economics within the scope of bankruptcy and the survival of enterprises was presented. The analysed case of the Beta company, which went bankrupt, indicates that the companies which are not able to undertake proper adjustments to competitive conditions of the market at the right moment are eliminated from it. The theoretical law “the survival of the fittest” finds then its reflection in practice. The following research methods were used in the article: a descriptive analysis and the trajectories of J. Argenti in terms of models. Detailed examinations of files of insolvency proceedings of the Beta company have been carried out.
Keywords: corporate bankruptcy and survival; creative destruction; evolutionary economics (search for similar items in EconPapers)
JEL-codes: G33 (search for similar items in EconPapers)
Date: 2015-05, Revised 2015-05
New Economics Papers: this item is included in nep-hme
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://www.badania-gospodarcze.pl/images/Working_Papers/2015_No_126.pdf First version, 2015 (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pes:wpaper:2015:no126
Access Statistics for this paper
More papers in Working Papers from Institute of Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Adam P. Balcerzak ().