Sanctions and their role in preventing the appropriation of the creditor’s property rights in bankruptcy proceedings–the case of Poland

Morawska, Sylwia; Prusak, Błażej; Banasik, Przemysław; Woźniak-Jęchorek, Beata

doi:10.18559/ebr.2019.1.6

Cited by 3 publications

(2 citation statements)

References 9 publications

(4 reference statements)

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“…However, as researchers pointed out, the regulations were ineffective due to the long duration of the proceedings, 20 high costs, stigmatisation of entrepreneurs related to the negative connotation of the word "bankrupt", 21 unsatisfactory rates of repayment of liabilities to creditors from the bankruptcy estate, and high rate of rejection of bankruptcy petitions due to the lack of funds to cover the costs of proceedings. 22 In 2015, the number of opened insolvency proceeding that had the possibility to make an arrangement was only 12%, with the other proceedings involving the liquidation of the debtor's assets. Reorganisation (remedial) declarations available to companies threatened with insolvency were ineffective and totally marginalised by the business practice.…”

Section: The Restructuring Framework In Poland: An Overview Of Key Le...mentioning

confidence: 99%

The legal restructuring framework in Poland: Does it help indebted enterprises avoid bankruptcy?

Dzyuma-Zaremba¹

2021

Intl Insolvency Rev

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The purpose of the article is to present the latest research regarding the usefulness of restructuring proceedings in Poland, which enterprises threatened with insolvency or already insolvent may use to avoid bankruptcy. Changes in the legal system in Poland in 2015 were ground‐breaking, as not only the bankruptcy law was amended, but also the legal system was enriched with a new Restructuring Law (in force from 2016). The contribution of this article is threefold. First, the specifics of the four types of restructuring proceedings and the main actions to be carried out during the proceedings are discussed. Second, an analysis of the phenomenon of enterprise restructuring in Poland has been conducted on the basis of statistical data published by the Ministry of Justice. Third, the effects of 533 restructuring proceedings opened against capital companies in the period 2016–2018 have been assessed. The results achieved have allowed for the formulation of initial conclusions on the usefulness of the legal debt restructuring framework in Poland for business entities experiencing temporary financial difficulties.

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Section: The Restructuring Framework In Poland: An Overview Of Key Le...mentioning

confidence: 99%

The legal restructuring framework in Poland: Does it help indebted enterprises avoid bankruptcy?

Dzyuma-Zaremba¹

2021

Intl Insolvency Rev

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“…Differences in bankruptcy law translate to its friendliness or severity towards debtors depending on the context, and thus to the development (or lack thereof) of entrepreneurship and innovation. Moreover, as a result of overly severe bankruptcy law for debtors, entrepreneurs consider bankruptcy a last resort, usually when it is too late (Morawska et al, 2019). This results in a situation where businesses that should have filed a bankruptcy petition a long time ago, so-called zombie companies (Prusak et al, 2019), are still present on the market.…”

Section: Introductionmentioning

confidence: 99%

The impact of bankruptcy regimes on entrepreneurship and innovation. Is there any relationship?

et al. 2021

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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.

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Mandatory audit rotation and audit market concentration – evidence from Poland

Indyk¹

2019

EBR

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The new audit regulation came into force in Poland in 2017 and imposed mandatory audit rotation. The new regulation aims to strengthen the auditor's independence but it might also affect concentration on the audit market. The aim of this paper was to analyse whether mandatory audit rotation has a potential to reduce the audit market concentration in Poland. The sample included 198 capital groups with the parent company listed on the Warsaw Stock Exchange. The own compilation was prepared based on the audit opinions which included information about appointed audit firms in the period 2011-2017 (1,386 observations in total). The paper includes the analysis of audit tenures, their length, frequency of changing the audit firm and direction of the changes (to Big-4 or to Non-Big-4). The results showed that the biggest capital groups tend to appoint Big-4 audit firms and if they change auditor-they choose another firm from the Big-4. Additionally, the high number of short-term tenures (up to five years) suggests that Big-4 firms have strong bargaining power and they benefit more from the rotation of the clients rather than from their retention. The findings significantly contribute to the hypothesis that mandatory audit rotation will not reduce the concentration on the audit market in Poland. The findings might be valuable for the regulators and supervisory authorities responsible for the monitoring of the concentration level on the audit market.

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Sanctions and their role in preventing the appropriation of the creditor’s property rights in bankruptcy proceedings–the case of Poland

Cited by 3 publications

References 9 publications

The legal restructuring framework in Poland: Does it help indebted enterprises avoid bankruptcy?

The legal restructuring framework in Poland: Does it help indebted enterprises avoid bankruptcy?

The impact of bankruptcy regimes on entrepreneurship and innovation. Is there any relationship?

Mandatory audit rotation and audit market concentration – evidence from Poland

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