Purpose: The objective of this paper is to propose the new indicator of bankruptcy law severity for debtors (BLSI-Bankruptcy Law Severity Index). On the basis of this index we conducted comparative analysis of debtor/creditor friendliness of bankruptcy laws among 27 selected countries. Design/Methodology/Approach: In the research the following methods were used: analysis of legal acts, literature review and expert method. Findings: The empirical results show that the most debtor-friendly bankruptcy and restructuring laws are those of the USA, Ireland and Canada. At the opposite pole were Slovenia, Australia and Austria. It can also be noted that many EU countries have a similar level of BLSI measure, which is most likely a consequence of harmonisation activities undertaken within the Community. Practical Implications: The conducted research enables us to propose the direction of changes in bankruptcy and restructuring laws in the next stage. Originality/value: On the basis of proposed BLSI, we will be able to examine the relationship between the severity of bankruptcy law and innovation, entrepreneurship and the level of development of financial markets in the studied countries.
The literature review indicates that bankruptcy law may play an important role in and be one of the factors influencing the development of entrepreneurship, innovation, and thus economic growth, among other things. In previous studies, the analysis of the impact of bankruptcy law on individual variables has been conducted independently. Our aim was to conduct a holistic analysis, taking several factors into account simultaneously. Therefore, a descriptive model was proposed, based on which the following research hypothesis was formulated: In countries characterised by an effective legal system and at the same time debtor-friendly bankruptcy law, the level of risk acceptance among entrepreneurs is higher, which is reflected in higher levels of entrepreneurship and innovation. Based on the selected variables, a cross-sectional analysis was conducted using linear models estimated on the basis of the least-squares method. Additionally, to strengthen the conclusions drawn, the models were assessed in such a way enabling the analysis of causality as defined by Granger based on the two-step process. The results obtained allowed us to confirm the research hypothesis: in countries characterised by an efficient legal system and at the same time debtor-friendly bankruptcy law, the level of risk acceptance among entrepreneurs is higher, which is reflected in higher levels of entrepreneurship and innovation. The research results are particularly important from the point of view of legislators who are responsible for drafting amendments to bankruptcy law. Including certain debtor-friendly provisions may, in the long run, lead to increased entrepreneurship and innovation, and thus economic development.
The aim of this article is to supplement the Law and Economics area of science with regard to the scope of the ex ante effectiveness of bankruptcy law using the example of Poland. Bankruptcy law is effective in the ex ante stage when it eliminates from the market insolvent entrepreneurs who cannot even afford to cover the costs of bankruptcy proceedings. In these cases, the bankruptcy court should dismiss the petition for bankruptcy because of “poverty” of the insolvent estate. As a result, the insolvent debtor should be liquidated and deleted from the register of companies. This paper investigates entities whose bankruptcy petition has been rejected due to “poverty” of the insolvent estate. The study shows that, after the filing has been dismissed, the majority of these entities are not liquidated. To determine who is responsible for this state of affairs, the article identifies the stakeholders at the time that applications are filed for bankruptcy proceedings and also after the bankruptcy petition has been rejected. The article highlights stakeholders' diverging interests, strengths, and weaknesses to assess their potential impact on bankruptcy procedures that should be dismissed due to “poverty” of the insolvent estate.
Purpose That on accountability in public organizations is quite an old debate. Its introduction in judicial systems is, however, still viewed with some suspicion, due to its potential trade-off with independence and impartiality. Nevertheless, the need to respond to the demands for greater transparency and accountability has also pushed judicial organizations to establish a dialogue with a wide range of subjects. This study aims to explore the understanding and the current practices of sustainability reporting currently in place in judicial systems. Design/methodology/approach The study adopts a comparative approach, conducting an online survey in two European countries (Italy and Poland). The survey was built around the research questions and literature and administered between February and March 2020. Specifically, 804 courts were involved, of which 430 are in Italy and 374 in Poland. Findings Findings show that the current practices are still not widespread and there is still a lack of understanding of what sustainability reporting is, and therefore, of what its potential usefulness within the courts could be. Moreover, many differences between the two countries are pointed out, so it is possible to assume that the different cultural and institutional settings influence sustainability reporting practices. Finally, some interesting implications for policymakers are provided. Originality/value Judicial organizations are still poorly investigated in the literature, despite being at the center of a wide public and political debate. Moreover, the international comparative perspective adopted constitutes a further aspect of novelty.
Purpose As a rule, common courts are hermetic organizations, separated from their stakeholders by procedures based on legal provisions. For these reasons, they are often perceived as unreliable and non-transparent, and as such, they do not inspire trust among stakeholders. The authors posit that the court’s community involvement may lead to the increased accountability and legitimacy of courts, which should in turn result in jurisprudence benefits. This paper discusses the concept of community involvement of courts, demonstrates how this idea may be implemented and explains its benefits for courts. Design/methodology/approach The results of an action research study undertaken between June 2013 and March 2018 at the Regional Court in Gdansk (Poland) are discussed. Findings The results highlight factors underlying the implementation of the idea of community involvement, as well as the areas in which courts take these actions, and explain how it influences their accountability and legitimacy. This research describes the interests of different stakeholders and proposes a range of actions that may be taken by courts while cooperating with stakeholders to achieve the aims of community involvement. It also proposes a set of steps that enable courts to implement the idea of community involvement. Originality/value This paper develops the idea of the community involvement of courts, which may be used as an operating rule for public institutions to increase their legitimacy and accountability and explain its introduction in the context of courts. It offers a universal framework for the community involvement of courts that can be used in the context of any court in both the continental and Anglo-Saxon systems.
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