The efficiency of bankruptcy proceedings and the severity of insolvency regulations in view of the implementation of the New Opportunity Policy

Przemysław Banasik; Sylwia Morawska; Błażej Prusak; Michał Łukowski; Katarzyna Pustułka

doi:10.2478/ijme-2024-0034

The efficiency of bankruptcy proceedings and the severity of insolvency regulations in view of the implementation of the New Opportunity Policy

Abstract

The article investigates the relationship between the efficiency of insolvency proceedings, as measured by their duration, and measures the severity of bankruptcy law toward debtors in 27 countries, of which 23 are EU. This objective was achieved using quantitative methods – Pearson’s correlation, pooled panel regression and Granger causality. Research shows no direct correlation between the two variables mentioned above. The increase in sanctions in bankruptcy law contributed to a decrease in the efficiency of insolvency proceedings. In addition, less stringent conditions concerning the time taken to file a bankruptcy petition translated into a shorter duration of insolvency proceedings. Therefore, supporting the New Opportunity Policy, we recommend that regulators focus on softening the legal requirements for filing a bankruptcy petition, for setting a time limit for filing and on reducing the sanctions for honest debtors, including those imposed for failure to file for bankruptcy within the period prescribed by law.

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Authors (5)

Przemysław Banasik dr hab.
- Faculty of Management and Economics
- Gdańsk University of Technology
Sylwia Morawska dr hab.
- SGH
Błażej Prusak dr hab.
- Faculty of Management and Economics
- Gdańsk University of Technology
Michał Łukowski Dr
Katarzyna Pustułka
- SGH

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Keywords

BANKRUPTCY, EFFICIENCY OF INSOLVENCY PROCEEDINGS, LAW & ECONOMICS, NEW OPPORTUNITY POLICY, RESTRUCTURING

Details

Category:

Articles

Type:

artykuły w czasopismach

Published in:

International Journal of Management and Economics pages 1 - 13,
ISSN: 2299-9701

Language:

English

Publication year:

2024

Bibliographic description:

Banasik P., Morawska S., Prusak B., Łukowski M., Pustułka K.: The efficiency of bankruptcy proceedings and the severity of insolvency regulations in view of the implementation of the New Opportunity Policy// International Journal of Management and Economics -,iss. 61(2) (2024), s.1-13

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