The bankruptcy system is here defined by the
that govern the bankruptcy
of firms. For instance, those specifying the transfer of corporate control from stockholders to
creditors when a firm goes bankrupt.
are of importance in corporate governance because their design determines the
incentives of managers and thereby
the economic efficiency of the firm.
reference on bankruptcy systems see, for instance, Smith and Warner .
of the bankruptcy system on corporate performance and other other kinds of
institutions of relevance for corporate governance.
Table - International corporate governance: Tentative
characterizations of legal and empirical state of large firm bankruptcy system
in various countries as of 1980-95: 1) Developing countries. 2) Germany. 3) Japan.
4) Anglo-American countries. 5) Denmark.