Babcock University Research Portal

Bankruptcy and Insolvency: An Exploration of Relevant Theories

Authors: ONAKOYA Adegbemi

Publication Type: Journal article

Journal: International Journal Of Economics And Financial Issues

ISSN Number:

Downloads

Views

Abstract

The essence of the law on bankruptcy is to collect the debt of an entity and distribute such asset among the contending claimholders. It is, also meant to resolve the broad issues of business failure in the context of the imminent or indeed the actual collapse of the indebted entity. The objective of the study is to explore relevant theories guiding the procedure of distribution or entitlement in bankruptcy among a group of agents. The study employed exploratory research method via an extended literature review, to investigate the underlying principles guiding the allocation of a given amount of a perfectly divisible good among a group of agents. The results of this extended literature review indicate that the procedure of distribution or entitlement in bankruptcy is supported by five of the theories reviewed while only value based theory posits the absence of any cogent solution to the financial distress of the debtor. The knowledge of theories is not enough for business survival, the ability to predict the possible occurrence of business failures is necessary. Market based models including the stock market option valuation approach perform better than the earlier models which rely heavily on historical accounting figures.

Access to Documents

External Link
Download
Digital Object Identifier

Keywords

ONAKOYA,A. . (0000). Bankruptcy and Insolvency: An Exploration of Relevant Theories, 7 (), 706-706.

ONAKOYA,A. . "Bankruptcy and Insolvency: An Exploration of Relevant Theories" 7, no (), (0000): 706-706.

ONAKOYA,A. and . (0000). Bankruptcy and Insolvency: An Exploration of Relevant Theories, 7 (), pp706-706.

ONAKOYAA, . Bankruptcy and Insolvency: An Exploration of Relevant Theories. 0000, 7 ():706-706.

ONAKOYA,Adegbemi , . "Bankruptcy and Insolvency: An Exploration of Relevant Theories", 7 . (0000) : 706-706.

O.Adegbemi , "Bankruptcy and Insolvency: An Exploration of Relevant Theories" vol.7, no., pp. 706-706, 0000.

Access to Documents

Keywords

About Us

Admissions

Contact Us

Policies

ALUMNI

STUDENT POPULATION