this paper investigates the relationship between earnings management and quality of earnings for the bankrupt and non-bankrupt firms listed in the tehran stock exchange from 2007 to 2012.the earnings quality  is measured by four separate accounting-based earnings attributes: accruals quality, earnings persistence, earnings predictability; earnings and is also examined by testing the relationshi...

We examine whether individuals are influenced to file for bankruptcy by the past bankruptcies of their close neighbors. We find that a one standard deviation increase in neighborhood bankruptcies increases the probability of defaulting via bankruptcy rather than via credit card charge-off by 6%. Our individual level data on defaulters is from detailed credit card accounts, which is matched to n...

Does an entrepreneur-friendly bankruptcy law encourage more entrepreneurship development at a societal level? How does bankruptcy law affect entrepreneurship development around the world? Drawing on a real options perspective, we argue that if bankrupt entrepreneurs are excessively punished for failure, they may pass potentially high-return but inherently high-risk opportunities. Amassing a lon...

While prior papers have examined the impact of state exemption and garnishment laws on the average household, this paper is the first to examine their heterogeneous impact. In my theoretical model, households choose between three options: repayment, bankruptcy, and informal bankruptcy (non-repayment without the benefit of the formal bankruptcy process). The model makes two predictions about the...

In this paper we model the spillovers from the restructuring of a financially distressed firm on other firms and the feedback effects from the restructuring. Our results indicate that the spillover and feedback effects are complex and are determined by several factors including the level of information asymmetry regarding the restructuring firm, its direct bankruptcy cost, bankruptcy’s effect o...

Personal bankruptcy Ž lings have risen from 0.3 percent of households per year in 1984 to around 1.35 percent in 1998 and 1999, transforming bankruptcy from a rare occurrence to a routine event. Lenders lost about $39 billion in 1998 due to personal bankruptcy Ž lings. But economists have little understanding of why households Ž le for bankruptcy or why Ž lings have increased so rapidly. Until ...

It is widely believed that the whole economic system has exhibited an increasingly intertwined nature in the context of economic globalization and regional integration. With the increasing interactions among trading partners in a supply network, bankruptcy of a member firm may make others get into distressed situations. This kind of phenomena is called bankruptcy diffusion or bankruptcy contagi...

Over the last two decades, both bankruptcy and obesity rates in the U.S. have seen a steady rise. As obesity is one of the leading causes of medical and morbidity related economic costs, its influence on personal bankruptcy is analyzed in this study. Using the National Longitudinal Survey of Youth 1979, we employ a duration model to investigate the relative importance of obesity on the timing o...

The economic approach to bankruptcy envisions bankruptcy law as a set of rules approximating the contractual terms to which, at the time credit is extended, a creditor and debtor would agree should govern in the event of the debtor's insolvency. Some traditional bankruptcy scholars criticize the economic approach for what they see as its failure to advance goals and values which they deem neces...

The U.S. personal bankruptcy system functions as a bankruptcy system for small businesses as well as consumers, because debts of noncorporate firms are personal liabilities of the firms’ owners. If the firm fails, the owner has an incentive to file for bankruptcy, since both business debts and the owner’s personal debts will be discharged. In bankruptcy, the owner must give up assets above a fi...