Markéta Arltová

University of Economics Prague Czech Republic

arltova@vse.cz

An attempt to compare the efficiency of insolvency proceedings

in various countries in the world

Luboš Smrčka

University of Economics Prague Czech Republic

smrckal@vse.cz

Lee Louda

University of Economics Prague Czech Republic

lee.louda@vse.cz

Xavier Mateos-Planas

Queen Mary University of London UK

x.mateos-planas@qmul.ac.uk

Abstract. This paper deals with the efficiency of insolvency proceedings in various countries. The analysed characteristics of insolvency proceedings are recovery rate, time and costs spent on solving the insolvency case. The paper’s analysis stems from the results of the survey done by the World Bank and the International Finance Corporation under the Doing Business project. The survey provides qualified expert estimates of the efficiency of insolvency proceedings by individual countries in the whole world. Our analysis is based on 12 groups, each containing 5 countries (in total 60 countries). These groups are distinguished according to their level of economic development and territorial circumstances. The aim is to map mutual relationship between the wealth of a country (measured by GDP per capita) and the main results of insolvency processes represented by the recovery rate. The results of this paper prove that the relationship between the recovery rate and the wealth of a specific country exist. The correlations are also observed between basic characteristics of insolvency proceedings (recovery rate, time and costs).

Received: February, 2016

1st Revision: March, 2016

Accepted: June, 2016

DOI: 10.14254/2071-

8330.2016/9-2/2

Keywords: insolvency, statistics, insolvency costs, recovery rate, regression analysis.