Why do spanish firms rarely use the bankruptcy system? The role of the mortgage institution

Miguel Garcia-Posada and Juan Mora-Sanguinetti

No 1234, Working Papers from Banco de España

Abstract: Taking advantage of a rich database of more than 1 million companies in Spain, France and the U.K., we propose and test a hypothesis to explain why Spain has one of the world’s lowest business bankruptcy rates, even during the current economic crisis and after controlling for market exit rates. This hypothesis is based on two premises, the low efficiency of the Spanish bankruptcy system relative to that of an alternative insolvency institution, the mortgage system, and the unattractiveness of the personal bankruptcy law

Keywords: Bankruptcy; mortgage; insolvency (search for similar items in EconPapers)
JEL-codes: G21 G33 K0 (search for similar items in EconPapers)
Pages: 54 pages
Date: 2012-09
New Economics Papers: this item is included in nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.bde.es/f/webbde/SES/Secciones/Publicaci ... /12/Fich/dt1234e.pdf First version, September 2012 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bde:wpaper:1234

Access Statistics for this paper

More papers in Working Papers from Banco de España Contact information at EDIRC.
Bibliographic data for series maintained by Ángel Rodríguez. Electronic Dissemination of Information Unit. Research Department. Banco de España ().