The new Brazilian bankruptcy law: first impacts

Vol. 29 No. 3 (2009)

Jul-Sep / 2009
Published July 1, 2009
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Araujo, Aloisio, and Bruno Funchal. 2009. “ The New Brazilian Bankruptcy Law: First Impacts”. Brazilian Journal of Political Economy 29 (3):191-212. https://centrodeeconomiapolitica.org/repojs/index.php/journal/article/view/493.

The new Brazilian bankruptcy law: first impacts

Aloisio Araujo
Respectivamente, EPGE/FGV-RJ e IMPA
Bruno Funchal
Professor titular da FUCAPE Business School
Brazilian Journal of Political Economy, Vol. 29 No. 3 (2009), Jul-Sep / 2009, Pages 191-212

Abstract

The goal of this paper is to analyze the premiere effects of the New Brazilian Bankruptcy Law, measuring its impact over the amount of bankruptcies and judicial reorganizations, and the firms' access to credit. Making use of econometric models we find that the amount of bankruptcies (requested and decreed) suffered a strong and immediate impact, reducing it in a significant way as well as the requirement of judicial reorganizations. Finally, using sectorial aggregated credit data, we find an expansion of the credit market, mainly to commercial, rural and services sectors. Additionally we did not evidence changes at the average interest rate charged to firms.

Jel Classification:


Keywords: credit bankruptcy law