Transition and enterprise restructuring: the role of budget constraints and bankruptcy costs

Rizov, Marian (2005) Transition and enterprise restructuring: the role of budget constraints and bankruptcy costs. Economics Letters, 86 (1). pp. 129-134. ISSN 0165-1765

Full text is not in this repository.

This item is available in the Library Catalogue

Abstract

The focus of analysis is on the impact of financial leverage as a measure of bankruptcy costs on enterprise restructuring, based on budget constraints in the economy. Data of Bulgarian manufacturing firms allow comparison of firm behavior under soft and hard budget constraints as distinguished by the inception of a currency board in 1997. Controlling for change in sales, firm size and type of ownership, statistically significant relationship between financial leverage and firm restructuring through labor adjustments is found to exist under hard budget constraints only.

Item Type:Article
Research Areas:Business School > Economics and International Development
Citations on ISI Web of Science:2
ID Code:617
Useful Links:
Deposited On:02 Dec 2008 14:43
Last Modified:12 May 2014 15:32

Repository staff only: item control page

Full text downloads (NB count will be zero if no full text documents are attached to the record)

Downloads per month over the past year