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The Disciplinary Role of Bankruptcy Law to Protect Corporate Claim HoldersÂ’Right

Jurnal Ekonomi, Volume 9, Nomor 2, Juni 2005
Journal from JIPTUNMERPP / 2012-08-08 11:38:40
Oleh : Pramayanti Meitasari, Faculty of Economics Merdeka University Malang
Dibuat : 2005-06-01, dengan 0 file

Keyword : Bankruptcy law, creditors right, apportunistic behaviour, corporate alue

This paper examines the disciplinary role of bankruptcy law to protect corporate claim holdersÂ’ right. Finance literature highights the conflict of interest between management, majority and minority share holders, and creditors. Majority shareholder potentially expropriates the wealth of minority shareholders and creditors through corporate policies. The study shows that creditors can make use of bankruptcy petition to penalizethe management actions when the corporate usiness strategies fail. Such disciplinary action, however, depends on reliability of bankruptcy law provide protection for the corporate claim rights of minority holders. The development of bankruptcy law effects the way that corporations confront bankruptcy risks. A well functioning bankruptcy system should effectively influence the mutual trust of loan contracts, thus it controls opportunistic behaviour. The study uses Indonesian data to find evidence on the effect of disciplinary role of bankruptcy law to provide protection for creditorsÂ’ rights

Deskripsi Alternatif :

This paper examines the disciplinary role of bankruptcy law to protect corporate claim holdersÂ’ right. Finance literature highights the conflict of interest between management, majority and minority share holders, and creditors. Majority shareholder potentially expropriates the wealth of minority shareholders and creditors through corporate policies. The study shows that creditors can make use of bankruptcy petition to penalizethe management actions when the corporate usiness strategies fail. Such disciplinary action, however, depends on reliability of bankruptcy law provide protection for the corporate claim rights of minority holders. The development of bankruptcy law effects the way that corporations confront bankruptcy risks. A well functioning bankruptcy system should effectively influence the mutual trust of loan contracts, thus it controls opportunistic behaviour. The study uses Indonesian data to find evidence on the effect of disciplinary role of bankruptcy law to provide protection for creditorsÂ’ rights

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PropertiNilai Properti
ID PublisherJIPTUNMERPP
OrganisasiFaculty of Economics Merdeka University Malang
Nama KontakDra. Wiwik Supriyanti, SS
AlamatJl. Terusan Halimun 11 B
KotaMalang
DaerahJawa Timur
NegaraIndonesia
Telepon0341-563504
Fax0341-563504
E-mail Administratorperpus@unmer.ac.id
E-mail CKOwsupriyanti@yahoo.com

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  • Editor: Wiwik Supriyanti, Dra. SS.