قانون ورشکستگی شدید یا ملایم: که بر سرمایه گذاری و تامین مالی تصمیم گیری تاثیر می گذارد؟

Simulations illustrate how the bank finally chooses between these equilibriums while the legal environment becomes more severe. For moderate levels of legal sanctions, banks may accept a certain level of faulty management, expecting to take advantage of bankruptcy punishment. An increase in sanctions, however, has a compelling effect on the companies towards honoring their commitments. Once the optimal equilibrium prevails, any additional increase in sanctions is ineffective as the players' strategies no longer depend on the legal environment. As a result, extreme severity is not required to ensure both ex-ante and ex-post efficiencies. Last, we find that a more severe bankruptcy law increases the protection of banks and may result in reduction of the contractual interest rate, which on the other hand benefits the debtors.