Debt Recovery in Firm Liquidations: Do Liquidation Trustees Matter?

Arbeitspapier

Insolvency systems play a crucial role in protection of creditor rights, yet micro-level empirical evidence on the functioning of insolvency regimes worldwide is sparse. We investigate whether creditors’ recovery of outstanding claims, a measure of ex-post efficiency of an insolvency regime, depends on the characteristics of the trustee delegated the administration of the liquidation proceedings. To this end, we draw on a novel dataset of firm liquidations from Slovenia and exploit courts’ de facto random assignment of firm liquidation cases to licensed liquidation trustees. Using a wide range of specifications and controls, we find that a subset of trustee characteristics indeed matters for debt recovery. Thus, ex-post efficiency of an insolvency regime depends not only on its formal rules and procedures, but also on who implements them in practice.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 6034

Classification and Topics

• Classification: Wirtschaft ; Bankruptcy; Liquidation ; Business and Securities Law ; Socialist Systems and Transitional Economies: Legal Institutions; Illegal Behavior
• Subject: insolvency ; firm liquidations ; debt recovery ; liquidation trustees ; Slovenia

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Cepec, Jaka ; Grajzl, Peter ; Zajc, Katarina
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2016

Further information

• Handle: http://hdl.handle.net/10419/145069
• Last update: 10.03.2025, 11:44 AM CET