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Bankruptcy law and equity capital: Evidence from India

Bitan Chakraborty et al.

Accounting Theory and Practice2025https://doi.org/10.1016/j.accoth.2025.100007article
ABDC C
Weight
0.37

What the paper says

We examine the impact of a stringent creditor-in-control bankruptcy law on the equity capital of firms in India. Exploiting the within-country differences in court efficiency for identification using a differences-in-difference framework, we find that higher exposure to the bankruptcy law leads to a higher inflow of new equity investments into firms. Additional investments by non-controlling outside shareholders drive the increase. Reduction in agency costs due to the disciplining impact of the law seems to be the mechanism. The incremental equity flows lead to a higher level of investments and innovation.

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https://doi.org/https://doi.org/10.1016/j.accoth.2025.100007

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@article{bitan2025,
  title        = {{Bankruptcy law and equity capital: Evidence from India}},
  author       = {Bitan Chakraborty et al.},
  journal      = {Accounting Theory and Practice},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1016/j.accoth.2025.100007},
}

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Bankruptcy law and equity capital: Evidence from India

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Evidence weight

0.37

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.16 × 0.4 = 0.06
M · momentum0.53 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.