Insolvency Timing and Managerial Decision-Making
An Experimental Study of Alignment of Managerial Decision-Making on Insolvency Timing with Shareholder Interests in Germany
|Publication Date:||Oct 2013|
| Publisher:||Westdeutscher Verlag GmbH|
| Book Format:||Paperback|
|List Price:||USD $79.99|
| Book Description: |
Frederik Drescher addresses the timing of non-mandatory insolvency filings based on threatening illiquidity (§ 18 InsO) with the aim of a company's restructuring as an agency problem between owners and management. The hypothesis of a tendency towards delayed insolvency filings, which was developed using a decision model, is experimentally confirmed. Moreover, the author analyzes different incentive instruments potentially leading to earlier insolvency filings.