Risto Herrala (BOFIT) and Biswajit Banerjee (National Bank of Slovakia) - The Insolvency and Bankruptcy Code and Corporate Leverage in India

Risto Herrala (BOFIT) and Biswajit Banerjee (National Bank of Slovakia) - The Insolvency and Bankruptcy Code and Corporate Leverage in India

Abstract
We estimate empirically the impact of the insolvency and bankruptcy code (IBC) on corporate leverage in India. The analysis builds on the Prowess database. For the estimations we use the difference in differences approach, where listed firms are used as the control group. We find that the IBC contributed to a sharp increase in corporate indebtedness. The findings are robust to various alternative model specifications.

Online BOFIT seminars are open to all researchers interested in the subjects covered. Those wishing to attend a seminar are kindly asked to register in advance, by filling in the Online Registration Form

The registration for each seminar is open until 9:00 am the day of the seminar. You will receive a link to join the seminar by email at the latest one hour before the seminar is scheduled to begin.