From courtrooms to corporations: The effect of bankruptcy court establishment on firm acquisitions

Obaid Ur Rehman; Zihan Zhou; Kai Wu; Wen Li

doi:10.1016/j.frl.2024.105037

From courtrooms to corporations: The effect of bankruptcy court establishment on firm acquisitions

Obaid Ur Rehman
, Zihan Zhou
, Kai Wu^*
, Wen Li

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

16 Scopus citations

Abstract

We examine the impact of bankruptcy court establishment (BCE) on corporate acquisition activities using hand-collected data of city-level BCE in China from 2008 to 2020. The results show that BCE promotes corporate acquisition activities largely due to mitigated information asymmetry and decreased deal inefficiency. Our results highlight the important role of judiciary reform in corporate acquisition decisions in emerging markets.

Original language	English
Article number	105037
Journal	Finance Research Letters
Volume	61
DOIs	https://doi.org/10.1016/j.frl.2024.105037
State	Published - Mar 2024
Externally published	Yes

Bibliographical note

Publisher Copyright:
© 2024

Keywords

Bankruptcy court
Firm acquisition
Judiciary reform

ASJC Scopus subject areas

Finance

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10.1016/j.frl.2024.105037

Cite this

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title = "From courtrooms to corporations: The effect of bankruptcy court establishment on firm acquisitions",

abstract = "We examine the impact of bankruptcy court establishment (BCE) on corporate acquisition activities using hand-collected data of city-level BCE in China from 2008 to 2020. The results show that BCE promotes corporate acquisition activities largely due to mitigated information asymmetry and decreased deal inefficiency. Our results highlight the important role of judiciary reform in corporate acquisition decisions in emerging markets.",

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AU - Li, Wen

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AB - We examine the impact of bankruptcy court establishment (BCE) on corporate acquisition activities using hand-collected data of city-level BCE in China from 2008 to 2020. The results show that BCE promotes corporate acquisition activities largely due to mitigated information asymmetry and decreased deal inefficiency. Our results highlight the important role of judiciary reform in corporate acquisition decisions in emerging markets.

KW - Bankruptcy court

KW - Firm acquisition

KW - Judiciary reform

UR - https://www.scopus.com/pages/publications/85183912654

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DO - 10.1016/j.frl.2024.105037

M3 - Article

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SN - 1544-6123

VL - 61

JO - Finance Research Letters

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From courtrooms to corporations: The effect of bankruptcy court establishment on firm acquisitions

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

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Cite this