The role of stakeholders on rejection of bankruptcy applications in the case of “poverty” of the estate: A Polish case study

Prusak, Błażej; Morawska, Sylwia; Kuczewska, Joanna; Banasik, Przemysław

doi:10.1002/iir.1329

Cited by 6 publications

(8 citation statements)

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“…Research indicates the need for measures that could expand access to financial information of a given indebted enterprise and to fulfill the expectations of bankruptcy specialists for an increase in the availability of financial statements (Bauer, 2018a). The information must pertain to various areas, including costs of bankruptcy proceedings (Prusak et al, 2019) and valuation methods used and the value of the debtor's assets (Smith and Strömberg, 2005;Altman and Hotchkiss, 2006;Newton, 2010;Bauer, 2015). Providing access to financial data in databases of bankruptcy processes increases their transparency and is a source of information for court representatives and creditors, i.e.…”

Section: First Stage Of Empirical Study Results Analysismentioning

confidence: 99%

“…Researchers emphasize the importance of information on the costs of bankruptcy proceedings for the purpose of conducting bankruptcy proceedings (e.g. Altman and Hotchkiss, 2006;March, 2010;Finch, 2012;Morawska, 2013;Bauer, 2013;Staszkiewicz and Morawska, 2019;Prusak et al, 2019). The need to conduct analyses on the costs of insolvency proceedings is also indicated in Bankruptcy Law.…”

Section: Second Stage Of Empirical Research Results Analysismentioning

confidence: 99%

“…The need to conduct analyses on the costs of insolvency proceedings is also indicated in Bankruptcy Law. Prusak et al (2019) draw attention to the role of determining the costs of bankruptcy in the context of Bankruptcy Law's effectiveness. In their opinion (2019, p. 63), "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.…”

Section: Second Stage Of Empirical Research Results Analysismentioning

confidence: 99%

“…Scientific publications by e.g. Altman and Hotchkiss, (2006), March (2010), Finch (2012, Morawska (2013), Bauer (2013), Staszkiewicz andPrusak et al (2019) indicate the importance of information about the costs of bankruptcy proceedings for the purpose of a trial. Bankruptcy specialists also emphasized the role of information on the costs of bankruptcy proceedings.…”

Section: Third Stage Of Empirical Research Results Analysismentioning

confidence: 99%

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Accounting as a Source of Financial Information on Insolvency in Liquidation Proceedings

Bauer

Hospodka

2020

CEMJ

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Purpose: The purpose of this paper was to indicate which information originating in accounting is important for ensuring the information transparency of bankruptcy proceedings. Methodology: Based on the literature review and the analysis of international legal acts, we determined priority types of information from accounting used in bankruptcy court proceedings. These types included information on the costs of insolvency proceedings, the assumption in the financial statements that there was no going concern, and the book value of assets. A survey was then conducted on a group of specialists in the field of bankruptcy. Findings: Respondents indicated information on the costs of bankruptcy proceedings as the most important. However, other accounting information under study also received a high assessment from insolvency specialists. The obtained assessments of individual quality features are characterized by high reliability confirmed by low standard errors. Research implications: Accounting evolves as a response to the information needs of accounting information users. Therefore, knowing these needs may contribute to changes in the requirements regarding the scope of information from accounting that is used in bankruptcy proceedings. Originality/value: In-depth knowledge of various aspects of the economic side of the bankruptcy phenomenon is part of the current trend in minimizing the negative effects of bankruptcy.

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Section: First Stage Of Empirical Study Results Analysismentioning

confidence: 99%

Section: Second Stage Of Empirical Research Results Analysismentioning

confidence: 99%

Section: Second Stage Of Empirical Research Results Analysismentioning

confidence: 99%

Section: Third Stage Of Empirical Research Results Analysismentioning

confidence: 99%

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Accounting as a Source of Financial Information on Insolvency in Liquidation Proceedings

Bauer

Hospodka

2020

CEMJ

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“…We searched for cross-country applications of the models, where the results may not necessarily be of sufficient importance to attract the audiences of the top tier journals indexed by the WoS. Due to the nature of the identification of the papers' populations, some of the papers not closely related to manufacturing insolvency prediction were omitted (Staszkiewicz and Morawska 2019;Prusak et al 2019;Karkowska 2019;Nocoń and Pyka 2019). The independent variables in the model follow the original methodology and are not standardized, nevertheless the methodology is less subjective than literature review based on researcher experience, and thus our conclusion remains most robust.…”

Section: Discussionmentioning

confidence: 99%

Cross-Country Application of Manufacturing Failure Models

Tomczak

Staszkiewicz

2020

JRFM

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The post-Altman models suffer from moral amortization. This paper asks whether models developed in one country can be applied in other economies. One of the characteristics of the prediction model is that a date drives the estimation. Thus, the estimated model based on one economy is not necessarily applicable to other economies. To verify such a statement, we carried out a literature review to identify the manufacturing models constructed during the last 30 years that were reported in reputable scientific journals. Our literature comprised 75 papers, and with the application of the citation count and citation mining, we selected a sample and traced the selected papers to the cross-country application. Our results indicated an existing gap in the cross-economy validation of existing manufacturing models. Our study has implications for policy, as the application of the prediction models to cross-economies’ consolidated financial statements is biased.

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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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The role of stakeholders on rejection of bankruptcy applications in the case of “poverty” of the estate: A Polish case study

Cited by 6 publications

References 0 publications

Accounting as a Source of Financial Information on Insolvency in Liquidation Proceedings

Accounting as a Source of Financial Information on Insolvency in Liquidation Proceedings

Cross-Country Application of Manufacturing Failure Models

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

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